Morgan Sindall lifts full-year profit outlook

(Sharecast News) - Morgan Sindall said on Thursday that full-year group pre-tax profits were set to be "significantly ahead" of its previous expectations, pointing to strong trading activity and increased visibility for the remainder of the year from both its Construction and Fit Out divisions. In the Fit Out segment, confidence levels have continued to increase with regards to the conversion of preferred bidder work and future tender opportunities, providing greater visibility for the rest of the year, it said. As a result, profits are now expected to be "significantly ahead" of previous expectations and further exceed the top-end of Morgan Sindall's medium-term target of £80m to £100m.

In Construction, the operating margin for the year is now set to be at top end of the company's medium-term target range of 3.0% to 3.5% thanks to "a strong disciplined focus on operational delivery and risk management". Revenues will be towards £1.4bn, due to increased visibility for the remainder of the year "supported by its high-quality orderbook and work at preferred bidder stage," it said.

Profits in the Mixed Use Partnerships division are expected to be in line with previous guidance, while the operating margin in Infrastructure is expected to be at top end of the company's medium-term target range of 3.75% to 4.25% and revenues remain unchanged from previous guidance.

The average daily net cash for the full year is expected to be in excess of £400m, in line with Morgan Sindall's previous expectations.

At 0809 BST, the shares were up 10.3% at 4,942p.

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