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The Markets
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The Markets
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Builders and building materials

Morgan Sindall builds up full-year expectations

The chief executive said Morgan Sindall now expects to deliver a full year performance "slightly above" previous expectations

Construction firm Morgan Sindall Group PLC (LON:MGNS) has raised full-year expectations for a second time as better momentum continues across its divisions.

Improving margins in three of its key areas, property services, construction and partnership housing are expected to boost company earnings, and the market for office fit-outs has continued to fare well.

The company boasted £7.3bn in secured work as of 30 September, up 10% since the year end, including a £4.1bn secured order book and a pipeline of regeneration and developments worth £3.2bn.

Chief executive John Morgan said: "We now expect to deliver a full year performance slightly above the board's previous expectations".

He said the upgrade was down to “positive momentum across the group's operations” and a strong balance sheet which enables the company to sustain growth.

Also, the average daily net cash for the full year is expected to be in excess of £100mln, ahead of previous guidance.

Broker Liberum called a 'Buy' rating on the firm, forecasting its average daily net cash to jump to £103m ahead of a strong performance expected in the second half of the year, but leaving its long-term figures unchanged due to macro uncertainty.

Shares climbed 2.2% to 1,328.4p on Wednesday morning.

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