Morgan Sindall Group (MGNS) H1 2025 earnings summary

Executive summary

• Achieved record first half with revenue up 7% year-over-year to £2.4bn and operating profit up 40% to £91.8m, with margin expansion to 3.9%.

• Adjusted profit before tax rose 37% to £95.9m, and interim dividend increased 20% to 50.0p per share.

• Order book and preferred bidder value reached £17.8bn, up 24%, providing strong visibility for 2025.

• Strong cash position maintained, with net cash at £390m after significant investment in partnership businesses.

• Upgraded medium-term targets for Fit Out and Construction divisions, with 2025 results expected in line with current expectations.

Financial highlights

• Adjusted operating profit up 40% to £91.8m; operating margin increased to 3.9% (+90bps year-over-year).

• Adjusted profit before tax up 37% to £95.9m; PBTA margin expanded to 4.0% (+80bps year-over-year).

• Earnings per share increased 36% to 153.1p; profit after tax up 37% to £71.8m.

• Net cash at period end was £390m; average daily net cash £354m.

• Interim dividend per share up 20% to 50.0p.

Outlook and guidance

• 2025 expected to be in line with current expectations, supported by strong first half and order book.

• Upgraded medium-term targets: Fit Out annual operating profit £80m–£100m; Construction revenue >£1.5bn and margin 3.0%–3.5%.

• Partnership Housing targets: 8% operating margin, ROCE up to 25%.

• Infrastructure targets: margin 3.75%–4.25%, revenue >£1bn.

• Construction and Infrastructure margins to be in the middle or above their target ranges; Property Services to deliver modest profits.