Strong growth at Morgan Sindall’s fit-out division helped the contractor hike pre-tax profit 50% in the first half of the year to £23m.
The fit-out business is expected to drive growth for the rest of the year on the back of a record order book of £568m, up by over half on a year ago.
Chief Executive, John Morgan (pictured) said operating margins were recovering at both fitout, now 4.3%, and the construction and infrastructure divisions, now up to 1.1%.
This helped to lift group pre-tax profits in the first six month of the year from £15m a year ago. Revenue rose 14% to £1.3bn.
|Morgan Sindall trading in first six months|
|Construction & Infrastructure||£694m||13%||£7.6m||138%||1.1%||60bps|
Across the business there was a significant rise in average daily net cash to £132m. The group the order book rose 5% to £3.8bn.
Chief Executive, John Morgan said: “This is a strong set of results, driven by another period of margin and profit growth in fit-out and further progress on margin recovery in Construction & Infrastructure.
“With the current trading patterns in fit-out and the forward visibility provided by the size and quality of its order book, together with further margin improvement in construction & infrastructure and an increase in scheme completions in partnership housing and urban regeneration, we are confident of another strong performance by the group in the second half.”