Morgan Sindall has revised its profit expectations for 2023, saying it expects them to beat previous predictions.
In a trading update this morning, the contractor said its equipment division was operating 40 percent above the level reported for the same period last year.
This “strong momentum” and the equipment division’s backlog of forward orders for the second half of the year have contributed to the board’s expectation of “full year profit for the group”. [will] be ahead of their previous expectations”.
The firm’s optimism has grown since May, when it said “very strong” fit-out trading was contributing to its performance forecast in line with expectations. At the time, it noted that its full-year performance is expected to show more weighting towards the first half than in previous years.
In February, Morgan Sindall’s full-year results for the year to 31 December 2022 showed it had become the UK’s second-biggest contractor after revenue hit £3.6bn of pounds
However, its margin fell as pre-tax profit fell 32% from £126m to £85m in the same period, although the company said this was due mainly to a write-off of £48.9m for historical building security obligations.
CEO John Morgan said Construction news at which point the company would pursue lower-cost, lower-risk construction projects, using its strong cash position to invest in the associated housing division.
The company will announce its half-year results to June 30, 2023 in August.
Earlier this month, the North East Association of Councils appointed the contractor in an £800m public sector construction framework. In May it secured a place in a £1.48 billion housing redevelopment framework for The Greener Futures Partnership.
