精东影视

Morgan Sindall cemented its status as construction鈥檚 star performer among listed firms with another set of strong results which has meant the company has upgraded profit targets at four of its six businesses.

The firm said pre-tax profit last year jumped 19% to a record 拢172m on turnover up 10% to 拢4.5bn. The firm鈥檚 order book, which does not include preferred bidder work, was up 28% to 拢11.4bn.

The company鈥檚 biggest business remains fit out with an income of 拢1.3bn, a rise of 18%, and an operating profit of 拢99m, up one third.

Chief executive John Morgan told 精东影视 the firm had won some jobs following the collapse of ISG last year but added: 鈥淚 think our balance sheet strength meant we won some jobs we otherwise might not have won.鈥�

Net cash at the end of last year was up 7% to 拢492m while average daily net cash last year was up 33% to 拢374m.

Morgan said its fit out arm had not taken on too many former ISG staff with many heading to Wates, Structure Tone and Mace instead along with several jobs left stranded by ISG鈥檚 implosion.

He added: 鈥淲e were very busy and we didn鈥檛 want to do too much because if you don鈥檛 give clients a level of service, you鈥檙e dead. We do have strong competition [now] and every business needs competition.鈥�

And he said that while some firms suffered in the wake of ISG鈥檚 collapse, the impact 鈥渨as not as bad as feared鈥�.

Fit out is one of its four businesses which have seen their medium term 鈥� which Morgan defined as three to four years 鈥� profit targets upgraded.

Its annual operating profit is expected to be between 拢60m and 拢85m, up from 拢50m to 拢70m, while construction has been given an operating margin target of between 3% and 3.5% 鈥� up from 2.5% to 3% 鈥� while infrastructure has been given a figure of 3.75% to 4.25%, from its previous 3.5% to 4% figure.

Morgan said he backed the government鈥檚 reforms on infrastructure and planning but asked if he had seen a noticeable difference admitted: 鈥淣ot really. The government is well intended but these things take time. Let鈥檚 hope they can do it in the time they want to do it in.鈥�

Meanwhile, its mixed use partnerships business has also had its targets upgraded although the figures for partnership housing remain unchanged. Morgan said 鈥渉ousing is better than it was but not as good as we would like it to be鈥�.

Revenue at partnership housing, which operates under the Lovell brand which has announced that it will build more than 2,000 homes for Cardiff and Vale Housing Partnership, was up 3% to 拢861m with operating profit up 18% to 拢36m.

Morgan added the firm had experienced gateway 2 delays but downplayed their impact. 鈥淲e get delays 鈥� that鈥檚 part of being a builder,鈥� he said.

The property services business was the only blot in the results racking up an 拢18m loss which Morgan Sindall said was down to 鈥渁 small number鈥� of contracts which it has since exited with the firm expecting a return to profit this year.

The firm鈥檚 house broker Deutsche Bank said it expected pre-tax profit to be up to 拢173m this year and 拢178m next with the figure rising to 拢184m in 2027.

Broker Investec called the results 鈥渟tellar鈥� and in a note added: 鈥淰ery strong and in-line FY24 results. Overall, strong delivery with a robust balance sheet and positive medium-term outlook.鈥� It said it was forecasting pre-tax profit of 拢173.5m this year and 拢180.5m next.