Image Source: Downtown in Business
Morgan Sindall Group plc, the UK-based Partnerships, Fit Out, and Construction Services Group, has announced a significant upgrade to its 2025 financial outlook, citing robust performance across its Fit Out and Construction divisions. The announcement, made via a trading update on 17 June 2025, signals growing confidence in the Group’s ability to exceed previous expectations and deliver strong results by year-end.
Fit Out Division: Driving Growth
Morgan Sindall’s Fit Out division has emerged as the standout performer in early 2025. Following a strong start to the year, trading momentum has accelerated, with profits now expected to significantly exceed prior forecasts. The division’s operating margin is projected to surpass the top end of its medium-term target range of £60–£85 million, driven by high demand for office upgrades, particularly in London, where developers are racing to modernize workspaces with energy-efficient designs.
This surge reflects broader market trends, including the shift toward hybrid work environments and the need for flexible, sustainable commercial spaces. The Fit Out division’s success has provided Morgan Sindall with increased visibility and confidence for the remainder of the year.
Construction Division: Solid Performance and Margin Expansion
The Construction division is also outperforming expectations. Operating margins are now forecast to land in the middle of the Group’s medium-term target range of 3.0% to 3.5%, with revenues set to exceed previous projections. This improvement is attributed to disciplined contract selection, operational delivery, and a strong pipeline of infrastructure and public sector projects.
The division’s ability to maintain profitability while navigating macroeconomic uncertainties—such as inflationary pressures and supply chain challenges—demonstrates the Group’s strategic agility and resilience.
Group-Wide Outlook: Strong Fundamentals and Upgraded Targets
Morgan Sindall’s overall performance is underpinned by medium-term fundamentals that remain intact across its core divisions. The Group now expects profit before tax (PBT) for 2025 to be significantly ahead of previous expectations, marking the second upward revision in less than three months.
The company’s secured order book remains robust, valued at £11.3 billion, broadly in line with year-end 2024 and up 26% year-on-year. This includes major wins such as the £130 million revamp of the National Sports Centre in Crystal Palace and the rebuilding of a primary school in York6.
Chief Financial Officer Kelly Gangotra emphasized that all other divisions—including Mixed Use Partnerships and Property Services—are on track to meet their targets, reinforcing the Group’s diversified strength.
Strategic Positioning and Sustainability
Morgan Sindall’s strategic focus on long-term sustainable growth is evident in its continued investment in ESG initiatives. The Group retained its MSCI ‘AAA’ rating and CDP ‘A’ rating for climate leadership, reflecting its commitment to responsible business practices.
CEO John Morgan stated, “Our balance sheet, supported by a substantial average daily cash position, has allowed us to make the right decisions to drive long-term growth while supporting shareholder returns. We remain well-positioned for the future and on track to deliver an outcome for 2025 in line with our current expectations”.
Looking Ahead
Morgan Sindall will release its half-year results for the six months ending 30 June 2025 on 29 July 2025, which will provide further clarity on its financial trajectory and strategic execution.
With upgraded medium-term targets for four out of six divisions and a high-quality order book spread across diverse sectors, Morgan Sindall is poised to continue its upward momentum through 2025 and beyond.
Sources: directorstalkinterviews.com, sharesmagazine.co.uk, .constructionnews.co.uk, onstructionenquirer.com, corporate.lovell.co.uk, bing.com
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