Morgan Sindall Shares Jump: Full-Year Results to Be ‘Significantly Ahead’ of Expectations

Morgan Sindall's (LON: MGNS) shares rallied more than 9% in early Thursday trading after it said full-year results for 2025 are projected to be significantly ahead of previous expectations.

This positive revision is primarily driven by robust performance within the Fit Out division.

The company revealed in a trading update that its Partnership Housing division is performing in line with guidance, strengthening its position through key appointments.

The division has been selected as the preferred developer for the Druids Heath regeneration scheme (3,500 homes) and signed a development agreement with Cardiff and Vale of Glamorgan Council (2,500 homes). Capital employed for the full year is estimated between £420m and £430m.

Mixed Use Partnerships are expected to report increased investment costs impacting profitability. Operating losses in the second half are projected to be almost double the £1.5m loss reported in the first half. Full-year average capital employed is now expected to range between £115m and £125m.

The Fit Out division's performance is said to have strengthened considerably, driven by strong trading and operational execution.

Profits from this division are now anticipated to significantly surpass previous forecasts. The secured order book as of August 31, 2025, stood at £1.6 billion, with £900 million allocated to 2026 and beyond. This represents an 8% increase compared to both the half-year 2025 and year-end 2024 figures.

Meanwhile, the Construction and Infrastructure divisions are reportedly on track to deliver profits in line with previous guidance, supported by growing order books. Property Services is also expected to deliver a modest profit for the year, as previously guided.

The Group's total secured order book at August 31, 2025, reached £12.2 billion, a 2% increase from the half-year and a 7% rise from the 2024 year-end position, indicating a high-quality workload.

Daily average net cash for the period between January 1 and September 30 was £361 million (including £45 million in jointly controlled operations or held for future payment), compared to £372 million for the same period last year. The average daily net cash for the full year is expected to exceed £350 million, surpassing the previous guidance of £330 million.

Driver Breakdown:

• Fit Out Performance: Strong trading and operational execution in the Fit Out division are the primary drivers of the improved outlook.
• Order Book Growth: The increase in the secured order book provides confidence in future revenue streams and profitability.