Morgan Sindall now trading ‘substantially above’ pre-pandemic level

Morgan Sindall is trading ‘substantially above’ its 2019 pre-pandemic level, as it bounced back from the effects of covid-19 lockdowns.

In its half-year results for the period ended 30 June 2021, the business recorded a 14% increase in revenue against the same period a year ago, rising to £1.56bn. Adjusted pre-tax profit shot up 238% to £53.1m. This figure was also 46% above the £36.3m Morgan Sindall made in the same period in 2019.

The company has also boosted its balance sheet, with net cash now standing at £337m, compared with £146m in the first half of 2020. Meanwhile, it has an order book worth £8.3bn.

The firm’s construction and infrastructure division recorded an operating margin of 2.9%, with operating profit up to £22.6m, compared with £13.9m in the first half of 2019, and £11.5m in the first half of 2020.

Headline results by business segment (vs HY 2020)

Source: Morgan Sindall

Morgan Sindall’s fit-out arm recorded operating profit of £19.3m, up from £16.4m in the first half of 2018 and £10.9m in the first half of 2020.

Chief executive John Morgan said: “We’ve had a very strong first half in which we’ve upgraded our profit guidance three times. We continue to make significant operational and strategic progress across the group. With such positive momentum across all our activities, I am excited by the opportunities ahead.

“As ever, we are focused on our cash generation and cash position. Maintaining a strong balance sheet, including a substantial net cash position, provides a significant competitive advantage for us. It enables us to continue making the right decisions for the business and to best position us in our markets for continued sustainable long-term growth.”

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