Ongoing fit-out boom and better than expected performance from construction behind latest revision

Morgan Sindall has upgraded its 2025 profit forecast for the second time in less than three months.

The firm, which last year saw pre-tax profit jump 19% to a record 拢172m on turnover up 10% to 拢4.5bn, said it 鈥渘ow anticipates that its full year results for 2025 will be significantly ahead of its previous expectations鈥�.

It had previously upgraded its forecast in March and in trading update this morning said an ongoing boom at its fit-out business and a strong performance from its construction business meant the numbers were being revised upwards again.

Morgan Sindall

Morgan Sindall said its construction business was performing better than expected

鈥淧rofits [at fit-out] are now expected to significantly exceed the Group鈥檚 previous expectations,鈥� it said. 鈥淐onstruction鈥檚 operating margin for the year is now expected to be in the middle of its Medium Term Target range (3.0% - 3.5%) with revenues also set to exceed previous expectations. As a result of this strong progress, profits are expected to exceed the Group鈥檚 previous expectations.鈥�

It added that its other divisions, which include its partnerships business, remain on track to perform 鈥渋n line with the Group鈥檚 previous expectations鈥� and added: 鈥淐onsequently, Group [profit before tax] is now expected to be significantly ahead of previous expectations.鈥�

Broker Investec previously said it was upgrading the firm鈥檚 underlying pre-tax profit from 拢176m to 拢187m and added that this morning鈥檚 news meant that it now expected 鈥渦nderlying PBT to increase by +10-12% on the back of this update鈥�.

The firm will announce its half-year results for the six months to the end of June on 29 July.

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