Morgan Sindall Group recently released its financial results for the first half of the year, revealing a swing to an operating loss in its property-services division. The company cited cost pressures and operational challenges as the primary reasons for the decline, despite reporting higher pretax profit and revenue.
Financial Highlights
- Pretax profit reached £58 million, up from £53.7 million in the same period last year.
- Revenue grew to £1.94 billion, compared to £1.7 billion in the previous year.
Property Services Division Struggles
Morgan Sindall’s property services division reported an operating loss of £4.1 million, a significant decrease from the operating profit of £2.5 million in the previous year. As a result, the company has downgraded the unit’s medium targets to reflect its current performance.
Dividend Increase
The board has declared an interim dividend of 36.0 pence per share, marking an increase from 33.0 pence in the same period last year.
Strong Performance in Fit Out Business
The company’s Fit Out business, however, saw positive results. It reported an operating profit of £30.4 million, up from £21.2 million. Morgan Sindall has raised its guidance for the division and now expects an operating profit ranging from £50 million to £70 million, compared to the previous guidance of £45 million to £50 million.
Positive Outlook
Chief Executive John Morgan expressed confidence in the company’s overall expectations and its ability to deliver another record-breaking performance.
Market Reaction
Shares of Morgan Sindall Group fell by 2.4% to 1,866 pence at 0808 GMT.
