23rd Jul 2026 12:01
(Alliance News) - Morgan Sindall Group PLC on Thursday reported higher earnings for the first half of 2026 and raised its targets for the Fit Out and Construction divisions.
The London-based construction company said pretax profit jumped 22% to GBP116.1 million in the six months to the end of June from GBP95.4 million a year earlier. Adjusted pretax profit surged 21% to GBP116.1 million from GBP95.9 million.
Revenue climbed 8.1% to GBP2.56 billion from GBP2.37 billion.
Basic earnings per share rose 20% to 186.10 pence from 155.70 pence, while adjusted EPS advanced 22% to 186.10p from 153.10p.
Morgan Sindall raised its interim dividend by 10% to 55.00p per share from 50.00p previously.
"Our performance continues to reinforce our track record of delivering strong revenue and growth in profits leading to robust cash generation, enabling continued investment in our Partnership businesses while also supporting strong dividend growth," said Chief Executive Officer John Morgan.
"Our Fit Out and Construction Services businesses delivered excellent results and made a significant contribution to group performance during the period, while our Partnerships businesses faced a more challenging macroeconomic environment."
Morgan Sindall raised its medium-term target for Fit Out to an average annual operating profit of between GBP100 million and GBP130 million, up from between GBP80 million and GBP100 million previously. Fit Out recorded GBP139.9 million in operating profit in 2025.
In Construction, the medium-term target was increased to an operating margin between 3.5% and 4.0%, up from between 3.0% and 3.5%, with an unchanged annual revenue target of more than GBP1.5 billion. In 2025, the Construction division recorded GBP1.16 billion in revenue and an operating margin of 3.2%.
Morgan Sindall said Partnership Housing made a "solid profit contribution" in the first half despite subdued housing market conditions.
However, it said near-term consumer confidence is expected to stay subdued, so operating profit for the division is now expected to be "slightly below" the previous year.
Looking ahead, CEO John Morgan said: "Despite the challenging housing backdrop, the strength and breadth of our diverse operations, together with the visibility provided by our high-quality order book for the remainder of the year, we remain confident that our full year performance will be in line with our current expectations."
Shares in Morgan Sindall were down 0.5% at 4,958.00p on Thursday morning in London.
By Michael Hennessey, Alliance News reporter
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