REG - Morgan Sindall Grp - Results For the Half Year (HY) Ended 30 June 2025
Tue 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250729:nRSc8812Sa&default-theme=true
RNS Number : 8812S Morgan Sindall Group PLC 29 July 2025
29 July 2025
MORGAN SINDALL GROUP PLC
('Morgan Sindall' or 'Group')
RESULTS FOR THE HALF YEAR (HY) ENDED 30 June 2025
Record first half results and continued strong dividend growth
Group Highlights
"It has been another record half year for the Morgan Sindall Group. These
results further demonstrate our track record of delivering strong revenue and
profit growth, supported by robust cash generation, enabling continued
investment in our Partnership businesses, while importantly supporting strong
dividend growth.
In the period, we have continued to make significant strategic and operational
progress across the Group. Expectations for the Group are underpinned by the
medium-term fundamentals for Fit Out which are expected to remain favourable,
together with both our UK construction and partnership programmes which expect
to benefit from the recent government investment commitments. As a result, we
have increased the medium-term targets for both the Fit Out and Construction
divisions.
The strength of our first half performance, together with the visibility
provided by our high-quality and growing order book for the remainder of the
year, places us in a strong position to deliver an outcome for 2025 which is
in line with our current expectations."
John Morgan, Group Chief Executive
( ) HY 2025 HY 2024 Change
( )Revenue £2,370m £2,214m +7%
( )Operating profit - adjusted(1) £91.8m £65.5m +40%
( )Profit before tax - adjusted(1) £95.9m £70.1m +37%
( )Earnings per share - adjusted(1) 153.1p 112.5p +36%
( )Period end net cash £390m £351m +£39m
Interim dividend per share 50.0p 41.5p +20%
( ) ( ) ( ) ( )
Operating profit - reported £91.3m £65.5m +39%
Profit before tax - reported £95.4m £70.1m +36%
Basic earnings per share - reported 155.7p 113.1p +38%
(1 )'Adjusted' is defined as before intangible amortisation of £0.4m and
exceptional building safety charge of £0.1m. (HY 2024: before intangible
amortisation of £0.3m and exceptional building safety credit of £0.3m)
· Strong growth delivers record results
o Revenue up 7% to £2.4bn
o Adjusted profit before tax up 37% to £95.9m
o PBTA margin expansion to 4.0% (HY 2024: 3.2%)
· Continued balance sheet strength
o Net cash of £390m (HY 2024: £351m)
o Average daily net cash of £354m (HY 2024: £372m)
· High quality secured order book at £12.0bn (HY 2024: £8.7bn, FY 2024:
£11.4bn)
· Interim dividend up 20% to 50p per share (HY 2024: 41.5p)
Highlights
Divisional Highlights
Revenue Operating Profit(2) Operating % Orderbook(1)
£m Change £m Change £m Change £m Change
Partnership Housing 405 +6% 13.2 +13% 3.3% +20bps 2,198 +6%
Mixed Use Partnerships 26 -56% (1.5) n/a n/a n/a 4,584 +50%
Fit Out 838 +33% 58.1 +41% 6.9% +30bps 1,445 +19%
Construction 523 +1% 16.1 +14% 3.1% +40bps 1,129 +32%
Infrastructure 482 -9% 18.4 -7% 3.8% +10bps 1,873 +11%
Property Services 104 +1% 0.5 n/a 0.5% n/a 781 -22%
Group/Eliminations (8) n/a (13.0) n/a n/a n/a (5) n/a
Total 2,370 +7% 91.8 +40% 3.9% +90bps 12,005 +5%
· A strong performance from Partnership Housing against the backdrop of
a housing market which continues to experience a slow pace of recovery;
operating profit(2) increasing by 13% to £13.2m (HY 2024: £11.7m). The
average capital employed for the year is expected to be between c£400m and
£430m, as the business continues to optimise investment in partnerships
opportunities for future growth.
· The first half trading performance in Mixed Use Partnerships included
increased investment costs relating to schemes yet to start on site and those
representing future opportunities, resulting in an operating loss(2) in the
period of £1.5m (HY 2024: Operating profit £0.5m). At the same time, the
division has continued to build selectively on its prior year successes in
converting five schemes previously at preferred bidder stage to signed
development agreements. The average capital employed for the year is expected
to be between c£105m and £115m.
· Fit Out delivered another significant and market-leading performance
in the first half with operating profit up 41% to £58.1m (HY 2024: £41.3m),
with strong volumes and operational leverage, leading to an operating margin
of 6.9% (HY 2024: 6.6%).
· A robust performance from Construction; operating profit(2) up 14% to
£16.1m (HY 2024: £14.1m) supported by an operating margin within its
medium-term target range.
· The first half trading performance for Infrastructure has benefited
from ongoing disciplined focus on operational delivery and risk management,
while also commencing early planning and design activities for a number of
recently awarded large frameworks; operating profit was down 7% to £18.4m (HY
2024: £19.7m), with an operating margin within its medium-term target range.
· Following the conclusion of its business remediation plan in 2024,
Property Services has continued to stabilise its business activities,
resulting in a small profit in the first half of this year. Given the
alignment of its ongoing activities to Construction, the division will fully
integrate into the Construction division from 1(st) January 2026; until then
it will continue to report as a standalone division.
· As a result of current performance, market position held together with
future prospects and the decision to integrate Property Services into the
Construction division, the medium-term targets for both Fit Out and
Construction have been upgraded as of 29(th) July 2025, which can be found on
page 6.
(1 ) The 'secured order book' is the sum of the 'committed order book',
the 'framework order book' and (for Partnership Housing and Mixed Use
Partnerships) the Group's share of the gross development value of secured
schemes (including the development value of open market housing schemes).
The 'committed order book' represents the Group's share of future revenue that
will be derived from signed contracts or binding letters of intent. The
'framework order book' represents the Group's expected share of revenue from
the frameworks on which the Group has been appointed. This excludes
prospects where confirmation has been received as preferred bidder only, with
no formal contract or binding letters of intent in place.
(2)( ) Adjusted before intangible amortisation of £0.4m and
exceptional building safety charge of £0.1m
Enquiries
Morgan Sindall Group Tel: 020 7307 9200
John Morgan
Kelly Gangotra
Brunswick Tel: 020 7404 5959
Jonathan Glass
Tom Pigott
Presentation
· There will be an analyst and investor presentation at 08.30am at
Deutsche Numis, 45 Gresham Street, London EC2V 7BF on 29 July 2025. Coffee
and registration will be from 08.30am
· A copy of these results is available at: www.morgansindall.com
(http://www.morgansindall.com)
· The presentation will be available via live webcast from 08.30am on 29
July 2025 at www.morgansindall.com.
Note to Editors
Morgan Sindall Group
Morgan Sindall Group plc, the Partnerships, Fit Out and Construction Services
Group, reported annual revenues of £4.5bn in full year 2024, employing over
8,000 employees and operating in the public, regulated and private sectors. It
reports through six divisions of Partnership Housing, Mixed Use Partnerships,
Fit Out, Construction, Infrastructure and Property Services.
Operating Review
Basis of preparation
In addition to presenting the financial performance of the business on a
statutory basis, adjusted performance measures are also disclosed. Refer to
the 'Other Financial Information' section which sets out the basis for the
calculations. These measures are not an alternative or substitute to statutory
UK-adopted IAS measures but are seen as more useful in assessing the
performance of the business on a comparable basis and are used by management
to monitor the performance of the Group.
Performance information included in the Divisional Review is given on an
adjusted basis, unless otherwise stated.
Summary Group Financial Results
The Group delivered a strong trading performance in the first half of 2025,
with a significant contribution from the Fit Out division. Group revenue
increased by 7% up to £2,370m (HY 2024: £2,214m), while adjusted operating
profit increased by 40% to £91.8m (HY 2024: £65.5m). Adjusted operating
margin was 3.9%, 90bps higher than the prior year (HY 2024: 3.0%).
The Group continued to benefit from elevated interest rates, albeit on a
slightly lower average net cash profile, resulting in a slightly lower level
of net finance income of £4.1m compared to the prior period (HY 2024:
£4.6m). Adjusted profit before tax was up 37% to £95.9m (HY 2024: £70.1m).
The adjusted tax charge for the period was £24.1m (statutory tax charge of
£22.4m), an adjusted effective rate of 25%.
The adjusted earnings per share increased 36% to 153.1p (HY 2024: 112.5p),
while the statutory basic earnings per share of 155.7p was up 38% (HY 2024:
113.1p).
In the period, the Group continued to experience growth in its high-quality
secured order book, closing at £12,005m, up 39% on the prior period (HY 2024:
£8,663m) and up 5% on the year end position (FY 2024: £11,419m). Maintaining
contract selectivity and bidding discipline to ensure there remains the
appropriate risk balance in the order book continues to be a priority and of
critical importance to the future success of the Group.
Net cash at the end of the period was £390m (HY 2024: £351m) and the average
daily net cash for the six months was £354m (HY 2024: £372m). Of this total,
£41.4m was held in jointly controlled operations or held for future payment
to designated suppliers (JVs/PBAs).
Operating cash flow for the period was an outflow of £16.7m (HY 2024: outflow
of £36.1m), as the Group continued its net investment in Partnership Housing
by £128m, where it has continued to invest in developing its new sites,
whilst also reflecting the usual seasonal working capital movements within
Construction Services and Fit Out, typically experienced in the first half of
the year. Operating cash for the last twelve months was an inflow of £154.1m.
Looking ahead, the Group continues to expect that the average daily net cash
for 2025 will be in excess of £330m.
The proposed interim dividend has increased by 20% to 50.0p per share (HY
2024: 41.5p), this reflects the increase in profit in the period, the strong
balance sheet and the Board's confidence in the long-term future prospects of
the Group.
The Capital Allocation Framework remains unchanged since December 2023 and can
be found in the Group's Annual Report and Accounts for the period ending
31(st) December 2024.
General Market Conditions
Expectations for the Group are underpinned by the medium-term fundamentals for
Fit Out which are expected to remain favourable, supported by our UK
construction and partnership programmes which would benefit from the recent
government investment commitments announced in the first half of 2025. While
these improving conditions provide tailwinds for the Group, the slow pace of
recovery in the private housing market, prolonged higher interest rates and
low economic growth in the UK continue to persist.
Against the backdrop of the affordable home targets set out by government in
2024, the Group welcomed the investment commitments made in the June 2025
Spending Review to support the delivery of these targets over the medium-term.
Notably, the government has committed £39bn over 10 years to the new
Affordable Homes Programme, representing the largest cash injection into
social housing over the last 50 years. Further, the social housing sector will
also benefit from a 10-year rent settlement that allows landlords to raise
rents by 1% above inflation, providing housing associations both medium and
long-term visibility over revenues and therefore investment planning
decisions.
Following closely behind was the launch of the National Housing Bank and
£16bn of new public investment to unlock and bring forward large and complex
sites at pace through the provision of infrastructure finance and guarantees,
while also unlocking private investment.
In well-established sectors for the Group, the Spending Review announced an
increase in planned spending commitments in Defence, Transport, Nuclear,
Energy and Education, providing several attractive long-term bidding
opportunities
In Fit Out, the medium-term fundamentals are expected to remain favourable as
business and market changes impacting tenants continue to be a supportive
driver, as well as ongoing lease expiries , the requirement for greater energy
efficiency from offices, more flexible and collaborative workspaces, the use
of office space as a tool for enhancing staff retention and brand image,
underpinned by clients requiring increasingly complex projects.
Elsewhere, the slow pace of recovery in the UK housing market continued to
persist as sales activity was tempered by affordability constraints impacted
by high mortgage rates. Planning reforms announced last year continue to
progress, albeit at a moderate pace; the Group envisages that it will take
some time for the changes to be implemented and effective.
Group Outlook for 2025
The strength of our first half performance, together with the visibility
provided by our high-quality and growing order book for the remainder of the
year, places us in a strong position to deliver an outcome for 2025 which is
in line with our current expectations.
The 2025 outlook for each division is detailed in the Divisional Review.
Medium-term divisional targets
To provide a framework for future performance, each division operates to a
medium-term financial target or set of targets (the 'target' or 'targets') and
are referred to in the Divisional Review.
As a result of current performance, market position held together with future
prospects and the decision to integrate Property Services into the
Construction division from 1 January 2026, the medium-term targets for Fit Out
and Construction have been upgraded as of 29(th) July 2025.
Division Medium-term target
Partnership Housing Operating margin of 8% / return on capital up towards 25%
(Unchanged)
Mixed Use Partnerships Return on capital up towards 25%
(Unchanged)
Fit Out Annual operating profit of £80m - £100m
(previously £60m - £85m)
Construction Operating margin of 3.0% - 3.5% pa, Revenue > £1.5bn(1)
(previously 3.0% - 3.5% pa and Revenue > £1bn)
Infrastructure Operating margin of 3.75% - 4.25% pa, revenue > £1bn
(Unchanged)
(1) Includes Property Services (FY 2024 revenue of £223m)
Partnership Housing
HY 2025 HY 2024 Change
£m £m
Revenue 405 381 +6%
Operating profit 13.2 11.7 +13%
Operating margin 3.3% 3.1% +20bps
Average capital employed(1) 393.0 289.3 +36%
( ) (last 12 months)
Capital employed(1) (at period end) 434.1 332.6 +31%
ROCE(1,2) (last 12 months) 10% 11%
In the period the division continued to strengthen its long-term partnerships
with the public sector, notably in the award of two long-term partnerships
with Cardiff & Vale of Glamorgan Council and Barnet Council, while demand
for contracting remained strong as the division continued with construction of
the contracted affordable homes on mixed-tenure sites to optimise activity.
Revenues in the period were up 6% to £405m (HY 2024: £381m), driven by
Contracting which was up 21% to £311m (77% of divisional total) compared to
the prior year. Mixed-tenure revenue declined by 23% to £94m (23% of
divisional total) compared to the prior year.
Both contracting and mixed-tenure activities maintained their strong margins
in the period, which resulted in operating profit(1) increasing by 13% to
£13.2m (HY 2024: £11.7m) with an operating margin of 3.3% (HY 2024: 3.1%).
Against the backdrop of the severe social housing shortage in the UK, the
longer-term development of the business and its partnerships with local
authorities and housing associations to support the delivery of social
affordable housing has continued with strong momentum through its work winning
efforts. Reflecting this ongoing activity and investment in future growth, the
capital employed(1) at the period end was £434.1m, an increase of £101.5m on
the prior year (HY 2024: £332.6m) and £115.4m higher than at the year-end
(FY 2024: £318.7m). Whilst the average capital employed increased in the
period as we continued investment in the partnership activities, the overall
ROCE(2) for the last 12-month period fell slightly from the prior period to
10% (HY 2024: 11%).
The division continues to maintain a high-quality secured order book, through
ongoing successful client engagement leading to work being awarded through
frameworks or through direct negotiation. The secured order book at the period
end was £2,198m, 6% higher than the prior year end (HY 2024: £2,081m), with
a further £2,849m at preferred bidder stage.
Mixed Tenure
The strategy to increase the number and size of mixed-tenure sites continued.
The division had 68 active mixed-tenure sites at various stages of
construction and sales, up from 66 at the prior year end and 63 from the prior
period. There was an average of 166 open market units per site, with an
average site duration of 47 months, providing long-term visibility of
activity.
During the year, 625 units were completed across open market sales and social
housing (including through joint ventures) compared to 784 units in the prior
period, noting that the number of open market sales within this decreased by
10% to 327. The average sales price was £254k compared to the prior year
average of £222k.
Notable work won in the period included an 820-home scheme in Barnstaple in
Partnership with Livewest, 146 homes in Coalville; 141 homes on the old
Northgate hospital site in Morpeth, and the 193-home former Edensor School
site in Stoke-on-Trent. Preferred bidder status was also secured with North
Yorkshire Council as their Development Partner, while the division's existing
partnership with Suffolk County Council achieved a key milestone by commencing
its first project in Newmarket in the period.
Contracting
Partnership Housing continued to experience robust levels of demand with
clients awarding work either through frameworks or direct negotiation. The
total number of equivalent units built increased by 16% to 1,838, up from
1,584 in the prior period.
Key contracting schemes awarded in the period included a £31m 'Extra Care'
scheme for Saffron, a £19m follow on Phase of Barne Barton for Clarion, the
£12m Crick Road Phase 3 for Monmouthshire County Council, a £10m development
for Thirteen Group in Spencerbeck, a £22m project in Narberth for Enfys
Homes and a £20m Refurbishment contract for Leicester City Council.
Divisional outlook for Partnership Housing
Partnership Housing's medium-term targets are to generate a return on average
capital employed up towards 25% and to deliver an operating margin of 8%.
Looking ahead to 2025, while we expect the gradual recovery in the housing
market to continue, solid profit growth is still expected in the year, with
the ROCE(1,2) expected to be similar to 2024 levels as we continue to
invest. We remain confident in the medium-term fundamentals of the sector and
remain well positioned to support the Government's affordable home plans
across the country over the forthcoming years.
The average capital employed(1,2) is expected to increase towards c£400m to
£430m, reflecting the increased scale of the business and stage of its
developments.
(1)Capital Employed is calculated as total assets (excluding goodwill,
intangibles and cash) less total liabilities (excluding exceptional Building
Safety provisions, corporation tax, deferred tax, inter-company financing and
overdrafts)
(2 ) Return on Average Capital Employed = (Adjusted operating profit
plus interest from JVs) divided by average capital employed
( )
Mixed Use Partnerships
HY 2025 HY 2024 Change
£m £m
Revenue 26 59 -56%
Operating profit(1) (1.5) 0.5 n/a
Average capital employed(2) 101.5 89.9 +11.6
( ) (last 12 months)
Capital employed(2) at period end 126.9 92.4 +37%
ROCE(2 & 3) (last 12 months) (0.5%) 10%
In the period Mixed Use Partnerships reported a loss, reflecting increased
investment expenditure relating to schemes yet to start on site and for
schemes which represent future opportunities for the division. As a result,
the ROCE(3) for the last 12 months was significantly down on the prior year,
based on average capital employed(2) of £101.5m.
Importantly, the division continued to build on its prior year successes in
the first half by converting five schemes previously at preferred bidder stage
to signed development agreements, while also converting a number of
opportunities into preferred bidder schemes.
At the end of the period, the division's order book amounted to £4,584m, 150%
up on the prior period (HY 2024: £1,830m), reflecting the continued success
the division has had in converting a number of schemes previously at preferred
bidder stage into in to secured long-term partnership agreements, with a
further £695m at preferred bidder stage.
In the period, the division secured long term partnerships with Durham County
Council to deliver the first phase of the Durham Innovation District at Aykley
Heads and with Manchester City Council for the regeneration of the Civic
Centre, Wythenshawe, where the division also signed a collaboration agreement
with Wythenshawe Community Housing Group to advance delivery of the first
phases of new homes. The division agreed to add a further site to its existing
long-term partnership with Oldham Council. Additionally, ECF, the division's
strategic joint venture with Homes England and Legal & General, entered
into new long-term partnerships with local authorities in Northampton and Hull
to bring forward major town centre regeneration programmes.
Elsewhere, the division completed a 215,000 sq ft Civil Service Hub at Talbot
Gateway, Blackpool and commenced construction of a 53,000 sq ft office
building for the Ministry of Defence. In Bury, construction began on a
four-storey Travel Hub, marking the first phase of our regeneration of
Prestwich Village Centre.
Progress continued across other active schemes, including at Stroudley Walk in
Bromley-by-Bow and, through ECF, Plot C2, a 23-storey residential building,
and Willohaus, an affordable Passivhaus apartment building, both in Salford.
The division's development portfolio included 6 projects on site at the end of
the period, totalling £196m gross development value (GDV)(4), with a further
6 projects, with a GDV of £81m expected to start on site in the second half
of this year and a further 15 planned to start in 2026 with a GDV of £465m.
Divisional outlook for Mixed Use Partnerships
The medium-term target for Mixed Use Partnerships is to generate a return on
capital up towards 25%.
While the division continues to build a substantial development order book for
a number of long-term sizeable schemes, the level of investment relating to
those schemes yet to start on site and future opportunities is likely to
result in profits for the year being close to break-even levels. The average
capital employed for the year is expected to be between c£115m and £125m.
(1 ) Before exceptional Building Safety Charge of £0.1m (HY 2024: Credit of
£0.3m). See Note 2 of the consolidated financial statements
(2) Capital Employed is calculated as total assets (excluding goodwill,
intangibles and cash) less total liabilities (excluding exceptional Building
Safety provisions, corporation tax, deferred tax, inter-company financing and
overdrafts)
(3) Return on Average Capital Employed = (Adjusted operating profit plus
interest from JVs) divided by average capital employed
(4) Represents the divisions share of the gross development value
Fit Out
HY 2025 HY 2024 Change
£m £m
Revenue 838 630 +33%
Operating profit 58.1 41.3 +41%
Operating margin 6.9% 6.6% +30bps
Fit Out delivered another market-leading performance in the first half of the
year, enjoying significant growth for both revenue and operating profit. With
revenue increasing by 33% to £838m (HY 2024: £630m) and operating profit up
41% to £58.1m (HY 2024: £41.3m) the division achieved a strong margin of
6.9% (HY 2024: 6.6%); once again strongly influenced by exceptional volumes
and operational leverage. The division's focus on consistent operational
delivery and enhanced customer experience continues to underpin its excellent
performance in the period, complemented by a high-quality workload through
disciplined and focused bidding, which in turn supports the division's strong
brand reputation and market position.
The overall balance of the business has been reasonably consistent over recent
years, with any movements in geography, type of work and sectors served not
indicative of any longer-term trends; the London region remains the division's
largest market, accounting for 73% of revenue (HY 2024: 72%) while other
regions accounted for the balance of revenue, reinforcing Fit Out's focused
but agile approach to its markets and understanding of its own capabilities
and skills.
Underpinning the current and future performance is a high-quality workload,
with the secured order book strong at £1,445m at the end of the period, 19%
up on the prior year position (HY 2024: £1,210m) and in line with the year
end position (FY 2024: £1,439m).
Commercial
Notable projects won in London during the period included 355,000 sq ft for
A&O Shearman at 2 Broadgate; 78,000 sq ft for Standard Chartered Bank near
Moorgate and 77,500 sq ft for Dentons UK and Middle East LLP. Key regional
project wins in the period included two projects for Arm - 110,000 sq ft in
Cambridge and 71,000 sq ft in Manchester.
Commercial fit out projects on site or completed in London during the period
included Citi in Canary Wharf; 380,000 sq ft for PwC at More London; 277,000
sq ft for Latham & Watkins on Leadenhall Street; 156,000 sq ft for
Unilever in Kingston-upon-Thames; 158,000 sq ft for Travers Smith; 129,000 sq
ft for JLL at 1 Broadgate; 114,000 sq ft for law firm Reed Smith near
Spitalfields; 110,000 sq ft for a professional services firm; 109,000 sq ft
for Aviva at 80 Fenchurch Street, 101,000 sq ft fit out for Investec on
Gresham Street; two projects totalling 99,500 sq ft for Deloitte at New Street
Square; 83,000 sq ft for Wise in Worship Square and 56,000 sq ft for Standard
Chartered Bank. At a regional level, this included: 185,000 sq ft for a UK
consumer, corporate and wealth and private banking franchise in Northampton;
two projects for Lloyds Banking Group - 160,000 sq ft in Leeds and 152,500 sq
ft in Birmingham; and 144,000 sq ft for Wirral Borough Council.
Science & Research and Higher Education
In the period, key projects won in the year included 28,000 sq ft at Begbroke
Science Park for University of Oxford and 15,000 sq ft for Queen Mary
University. Projects on site or completed during the period included 310,000
sq ft for British Land at 1 Triton Square in London and 100,000 sq ft at
Durham University School of Business.
Design & Build
Key projects won in this segment during the period included 100,000 sq ft of
lab and research facilities for Riverlabs in Ware; 78,000 sq ft for EDF in
Bristol and 60,000 sq ft for Monster Energy Europe in Uxbridge. Projects on
site or completed during the period included 120,000 sq ft for Wood Group at
Green Park in Reading and 50,000 sq ft for Mapletree at Green Park in Reading.
Frameworks
Notable Projects won under frameworks and corporate partnerships included £4m
of works for the Mayor's Office for Policing and Crime (MOPAC), with a future
order book of £29m.
Divisional outlook for Fit Out
Given the current continuation of the favourable Fit Out market, the increased
medium-term target for Fit Out is to deliver an average annual operating
profit of £80m-£100m.
Based on the timing of projects in the order book and the current visibility
the division has of future workload for the forthcoming year, the division is
expected to have another strong year in 2025, with profits expected to
significantly exceed the top end of this increased target range.
Construction
HY 2025 HY 2024 Change
£m £m
Revenue 523 519 +1%
Operating profit 16.1 14.1 +14%
Operating margin 3.1% 2.7% +40bps
Construction's revenue remained broadly in line with the prior period at
£523m (HY 2024: £518.5m), while operating profit increased by 14% to £16.1m
(HY 2024: £14.1m), resulting in an operating margin of 3.1% (HY2024: 2.7%).
The strong profit performance was once again attributable to the improvement
in the overall quality of earnings through disciplined contract selectivity
and operational delivery together with prudent risk management within its
order book.
The business is c90% public sector focused, with projects primarily delivered
through frameworks and with education continuing to be the largest market
sector served at around 45%, with increasing exposure to health, defence and
justice work.
The division continued to experience strong momentum in winning new work, with
the secured order book at £1,129m, 32% ahead of the prior year (HY 2024:
£856m). In addition to its secured order book, there continues to be a
significant amount of suitable work available in the market aligned to the
sectors that the division operates within, much of which is being generated
through negotiated or existing frameworks. At the end of the period, the
division had a further £1,345m of work at preferred bidder stage, providing
visible confidence of a sizeable ongoing workload for the forthcoming periods.
Key work won in the period included a £78m life sciences redevelopment in
Canary Wharf, the £24m Bishops Auckland Leisure Centre for Durham County
Council as well as the new £29m Caerphilly Leisure Centre in South Wales, the
£27m redevelopment of Southampton Outdoor Sports Centre, the £35m Alconbury
Weald Secondary School for Cambridge County Council alongside six emergency
services projects and five defence projects totalling £32m and £91m
respectively and the £34m Clydach Additional Learning Needs School for
Rhondda Cynon Taf County Borough Council.
Divisional outlook for Construction
Based on the market position held, together with future prospects and the
decision to integrate Property Services into the Construction division from 1
January 2026, the increased medium-term target for Construction is to deliver
an operating margin between 3.0% and 3.5% per annum with an annual revenue
target in excess of £1.5bn.
For 2025, the operating margin is expected to be in the middle of its
medium-term target range with revenues also set to exceed £1bn.
Infrastructure(1)
HY 2025 HY 2024 Change
£m £m
Revenue 482 530 -9%
Operating profit 18.4 19.7 -7%
Operating margin 3.8% 3.7% +10bps
Following its strong work winning successes in the prior year,
Infrastructure's trading performance in the first half for both revenue and
profits reflected the early phasing and nature of projects delivered through
these recently awarded large frameworks, while still ensuring a high-quality
operational delivery across its existing contract portfolio. Revenue decreased
by 9% to £482m (HY 2024: £530m) with operating profit declining by 7% to
£18.4m (HY 2024: £19.7m), while its operating margin expanded by 10 basis
points to 3.8% compared to this time last year. (HY 2024: 3.7%).
Infrastructure's order book of £1,873m was 11% up compared to the prior
period (HY 2024: £1,682m), with a further £668m of work at preferred bidder
stage. The order book continues to remain long term in nature, with around 98%
derived through existing frameworks. The division remains focused on the key
sectors of energy, nuclear, rail, highways, water and defence. Its markets
have significant long-term committed investment programmes in place, largely
driven by government and regulatory objectives. The division continues to see
its clients awarding large long-term frameworks to its delivery partners, with
projects focused on delivering the strategic outcomes over the term of the
framework.
Following ScottishPower's £5.4bn partnership announcement at the end 2024,
the division has been appointed as the sole contractor for the Denny to Wishaw
Network Optimisation project in the Early Contractor Involvement phase. In
addition, they have secured the substation portfolio for the North West region
as part of National Grid's Electricity Transmission Partnership.
Elsewhere the division made good progress on a number of key projects,
including a project on the Shetland Islands which is reaching completion. The
project for Scottish & Southern Electricity Network (SSEN) will play a key
role in the connection of the Viking wind farm, capable of generating 500MW.
The energy business also continues to make progress on a number of schemes for
National Grid Electricity Transmission along with growth on the Great Grid
Partnership. The division's nuclear business unit continues to progress with
the Electrical Upgrade programme at Sellafield, along with the Programme and
Project Partners Sellafield Product and Residue Store Retreatment Plant (SRP)
achieving a major milestone with the topping off of the 30m high roof.
In Rail, works are progressing well on the Beckton Depot upgrade for Transport
for London along with Surrey Quays and Colindale stations. Work is also
progressing on the Liverpool Street Station roof refurbishment, which was
awarded in 2024 by Network Rail, where one of the UK's busiest transport hubs
is now benefiting from increased natural light. With the award of the AMP8
Framework with Wessex Water in 2024, the team has commenced works on several
Combined Sewer Overflow projects across the framework.
In the Baker Hicks design business, design and assurance services have been
provided to key OEMs and contractors on the Eastern Green Link 1 & 2
Schemes, one of the largest electrical infrastructure projects to be delivered
in the UK, with a combined capex programme value of £6.5bn, which will form
an electrical 'superhighway', unlocking the renewable energy reserves in the
North Sea, supporting the transition of the UK's energy use from fossil fuels
to renewable resource. Work continued during the year on an innovative feed
additive facility for East Dunbartonshire Council in Dalry, North Ayrshire to
reduce methane emissions from cattle.
Divisional outlook for Infrastructure
The medium-term target for Infrastructure is to deliver an operating margin
between 3.75% and 4.25% per annum, with an annual revenue target in excess of
£1bn.
For the full year, based upon the timing of projects and the projected type of
work, its operating margin is expected to be in the middle of the medium-term
range, while revenues continue to be expected to be slightly below £1bn. This
is underpinned by their continued focus on long‐term client relationships,
disciplined contract selectivity, risk management and project delivery.
(1) Design results are reported within Infrastructure
Property Services
HY 2025 HY 2024 Change
£m £m
Revenue 104 103 +1%
Operating profit/(loss)(1) 0.5 (11.0) n/a
Operating margin(1) 0.5% -10.7% n/a
( ) (1 )before intangible amortisation of £0.4m (HY 2024: £0.3m)
Following the completion of the business remediation programme at the end of
2024, the division has continued to stabilise its business activities
resulting in a small profit in the first half of this year of £0.5m (HY 2024:
Operating Loss £11.0m).
Revenues remained in line with the prior period at £104m (HY 2024: £103m),
with a secured order book at £781m, down 22% from the prior year (HY 2024:
£1,006m) and 12% from the full year position (FY 2024: £887m), as the
division focussed its efforts on operational delivery across its existing
contract portfolio, as well as rebalancing its maintenance activities more
towards planned work. Of the orderbook remaining, 89% is for 2026 and beyond,
with future growth for 2025 onwards expected to come through existing client
contracts.
Divisional outlook for Property Services
Given the alignment of its ongoing activities to Construction, the division
will fully integrate into the Construction division from 1(st) January 2026;
until then it will continue to report as a standalone division through to
31(st) December 2025 and is still positioned to deliver a modest profit in
2025.
Other Financial Information
Other Financial Information
1. Net finance income. Net finance income was £4.1m, a decrease of £0.5m
compared to HY 2024.
HY 2025 HY 2024 Change
£m £m £m
Interest income on bank deposits 8.1 8.9 (0.8)
Amortisation of bank fees & non-utilisation fees (1.0) (1.0) -
Interest expense on lease liabilities (2.0) (1.8) (0.2)
Other (1.0) (1.5) +0.5
Total net finance income 4.1 4.6 (0.5)
2. Tax. A reported tax charge of £22.4m is shown for the year (HY 2024:
£17.5m). This equates to an effective tax rate of 23.5% on profit before tax.
The adjusted tax charge is £24.1m (HY 2024: £17.8m).
HY 2025 HY 2024
£m £m
Profit before tax 95.4 70.1
Less: share of underlying(1) net loss/(profit) in joint ventures (1.8) 0.1
Profit before tax excluding joint ventures 93.6 70.2
Statutory tax rate 25.0% 25.0%
Current tax charge at statutory rate (23.4) (17.6)
Tax on underlying(1) joint venture profits(2) (0.5) -
Tax on exceptional items 1.6 0.2
Residential Property Developer tax - (0.1)
Other adjustments (0.1) -
Tax charge as reported (22.4) (17.5)
Tax on amortisation (0.1) (0.1)
Tax on exceptional items (1.6) (0.2)
Adjusted tax charge (24.1) (17.8)
( )
(1) Underlying net profit of joint ventures excludes the exceptional Building
Safety charge of £0.1m related to joint ventures (HY2024: Charge £0.6m)
(2) Most of the Group's joint ventures are partnerships where profits are
taxed within the Group rather than the joint venture
3. Net working capital. 'Net Working Capital' is defined as 'Inventories plus
Trade & Other Receivables (including Contract Assets), less Trade &
Other Payables (including Contract Liabilities)' adjusted as below.
HY 2025 HY 2024 Change
£m
£m £m
Inventories 559.5 417.3 +142.2
Trade & Other Receivables(1) 755.3 772.5 (17.2)
Trade & Other Payables(2) (1,319.6) (1,238.9) (80.7)
Net working capital (4.8) (49.1) +44.3
( )
(1) Adjusted to exclude capitalised arrangement fees and accrued interest
receivable of £1.5m (HY 2024: £1.8m) and exceptional Building Safety
receivables of £11.6m (HY 2024: £8.1m).
(2) Adjusted to exclude accrued interest payable of £0.5m (HY 2024: £0.6m).
4. Cash flow. Operating cash flow was an outflow of £16.7m (HY 2024: outflow
of £36.1m). Free cash flow was an outflow of £31.5m (HY 2024: outflow of
£50.0m).
HY 2025 HY 2024 Last 12
£m £m Months
Operating profit - adjusted 91.8 65.5 188.9
Depreciation 19.7 15.3 37.5
Share option expense 4.3 4.4 10.4
Movement in fair value of shared equity loans - - -
Reversal of impairment of joint ventures - - (5.1)
Share of underlying(1) net loss/(profit) of joint ventures (1.8) 0.1 (6.5)
Other operating items (2) (3.2) 5.9 0.8
Change in working capital (112.6) (104.9) (41.5)
Net capital expenditure (including repayment of finance leases) (15.9) (22.4) (35.6)
Dividends and interest received from joint ventures 1.0 - 5.2
Operating cash flow (16.7) (36.1) 154.1
Income taxes paid (22.5) (22.3) (44.1)
Net interest received/(paid) (non-joint venture) 7.7 8.4 15.5
Free cash flow (31.5) (50.0) 125.5
(1) 'Underlying net profit of joint ventures excludes the exceptional building
safety charge (£0.1m) related to joint ventures
(2) 'Other operating items' includes provision utilised building safety
provision (£2.8m), an increase in provisions (£0.2m) and a gain on disposal
of PPE (£0.2m).
5. Net cash. Net cash at 30 June 2025 was £390m, as a result of a net cash
outflow of £102.9m from 1 January 2025, with movements summarised as:
£m
Net cash as at 1 January 2025 492.4
Free cash flow (as above) (31.5)
Dividends (42.3)
Other(1) (29.1)
Net cash as at 30 June 2025 389.5
(1) 'Other' includes the purchase of shares in the Company by the employee
benefit trust (£14.2m) and net loan repayments received from JVs (£24.1)
less proceeds from the exercise of share options (£9.1m) and proceeds from
the issue of new shares (£0.1m).
6. Capital employed by strategic activity. An analysis of the capital
employed in Construction Services and Fit Out shows a decrease of £88.4m
since the prior period, split as follows:
Capital employed(1,2) in Construction Services and Fit Out HY 2025 HY 2024 Change
£m £m £m
Construction (252.9) (228.4) (24.5)
Infrastructure (68.4) (84.5) +16.1
Fit Out (125.1) (70.6) (54.5)
Property Services 16.4 41.9 (25.5)
(430.0) (341.6) (88.4)
An analysis of capital employed in the Partnership activities shows an
increase of £136.0m since the prior period, split as follows:
Capital employed(1,2) in Partnerships HY 2025 HY 2024 Change
£m £m £m
Partnership Housing 434.1 332.6 +101.5
Mixed Use Partnerships 126.9 92.4 +34.5
561.0 425.0 +136.0
1 Total assets (excluding goodwill, intangibles, inter-company financing and
cash) less total liabilities (excluding corporation tax, deferred tax,
inter-company financing and overdrafts)
2 Adjusted to exclude Building Safety provisions
7. Dividends. The Board of Directors has proposed an interim dividend of
50.0p per share, an increase of 20% on the prior year interim dividend (HY
2024: 41.5p). This will be paid on 23 October 2025 to shareholders on the
register on 3 October 2025. The ex-dividend date will be 2 October 2025.
8. Principal risks and uncertainties. The Board continues to take a proactive
approach to recognising and mitigating risk with the aim of protecting and
safeguarding the interests of the Group and its shareholders in the changing
environment in which it operates.
Details of the principal risks facing the Group and mitigating actions are
included within the 2024 Annual Report. These are still considered to be
relevant risks and uncertainties for the Group at this time and are summarised
below (in no order of magnitude):
Summary of principal risks as per 2024 Annual Report:
Economic change and uncertainty - UK construction continues to benefit from
sustained government investment commitments reinforced in the June Spending
Review. This strengthens support for the Group's market segments particularly
in regeneration, construction and infrastructure (primary areas in the UK
targeted for growth). In addition, the Group's diversity of offering and
strong balance sheet protects the business from cyclical changes in individual
markets.
Exposure to UK housing market - The Group's long-term public sector
partnerships models, Government support and together with the UK's affordable
housing need. Prior headwinds such as inflation, mortgage rates and cost of
living have slightly eased during the reporting period, albeit we are seeing
slowing sales pace and minor increases in average selling prices. Planning
constraints continue to contribute to a slowdown in sales despite Government
commitments to speed up the process and in Mixed Use Partnerships, identifying
forward funders on some schemes is impacting start on site and potential
viability.
Poor contract selection and/or bidding - The Group continues its selective
approach to tendering work predominantly through frameworks and two -stage
negotiated procurement. The Group remains focussed on maintaining a quality
orderbook by operating within its target markets and proven capabilities
Health and Safety - The Group remains focussed on protecting the health,
safety and wellbeing of its people, supply chain and other key stakeholders.
It continues to monitor health and safety performance closely and invest
significantly in its HSE management systems. Failure to do so could damage the
Group's reputation as a responsible employer and affect its ability to secure
future work.
Failure to attract and retain talented people to maintain and grow the
business - Talented people are key to the Group's success, needed to deliver
successful projects and a positive customer experience. Skills shortages in
construction remain an industry issue for the foreseeable future. In the short
to medium-term, the Group is focussing on increasing its diversity across a
number of areas.
Insolvency of key client, subcontractor, joint venture partner or supplier -
There have been no further major supply chain or main contractor insolvencies
in the reporting period. However, this remains a risk as its supply chain
partners may be trading with strained finances as a result of challenging
market conditions and borrowing pressures. The Group's teams are acutely aware
of this and have increased their due diligence as well as providing help and
assistance where appropriate. In some limited circumstances the Group has
supported key partners with more favourable terms to assist their cash flow
while obtaining assurance on production progress and forms of guarantee.
Mismanagement of working capital and investments - The Group's strong balance
sheet and cash position continue to support long term investment in
partnership schemes and protect against economic downturns. Its effective
management of working capital and investments is a key differentiator and
provides confidence to clients and investors.
Climate change - Failure to protect the environment in which the Group
operates by reducing carbon emissions and waste and to fully consider
potential environmental risks on projects could cause delays to projects and
damage the Group's reputation. The Group has been acknowledged as leaders in
its sector, however, there is a recognition that there is much to do as
progress continues towards its 2045 net zero goal.
UK cyber activity and failure to invest in information technology - Recent
Cyber-attacks in the UK retail industry have highlighted the importance of
effective cyber security controls. To counter this risk the Group continues to
invest in its IT and cyber infrastructure. The Group has re-certified to
ISO27001 and the Government's Cyber Essentials Plus scheme. It is the first
company to achieve Defence Cyber Certification (DCC) developed with the UK
Ministry of Defence positioning the Group as a trusted partner for government
contracts. The Group views effective IT and cyber risk management as
essential to avoid system downtime, data loss and reputational damage that
could also result in significant fines and/or prosecution.
Cautionary forward-looking statement
These results contain forward-looking statements based on current expectations
and assumptions. Various known and unknown risks, uncertainties and other
factors may cause actual results to differ from any future results or
developments expressed or implied from the forward-looking statements. Each
forward-looking statement speaks only as of the date of this document. The
Group accepts no obligation to publicly revise or update these forward-looking
statements or adjust them to future events or developments, whether as a
result of new information, future events or otherwise, except to the extent
legally required.
Financial Statements
For the six months ended 30 June 2025
Condensed consolidated income statement
For the six months ended 30 June 2025
Six months to Six months to Year ended
30 June 2025 30 June 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
Notes £m £m £m
Revenue 2,369.5 2,214.2 4,546.2
Cost of sales (2,094.3) (1,978.0) (4,016.3)
Gross profit 275.2 236.2 529.9
Analysed as:
Adjusted gross profit 275.2 235.3 528.6
Exceptional building safety items 3 - 0.9 1.3
Impairment loss on contract assets - - (21.0)
Administrative expenses (187.4) (171.4) (360.0)
Share of net profit of joint ventures 7 1.7 (0.7) 3.2
Other operating income 1.8 1.4 9.9
Operating profit 91.3 65.5 162.0
Analysed as:
Adjusted operating profit 91.8 65.5 162.6
Exceptional building safety items 3 (0.1) 0.3 (0.1)
Amortisation of intangible assets (0.4) (0.3) (0.5)
Finance income 8.1 8.9 18.2
Finance expense (4.0) (4.3) (8.3)
Profit before tax 95.4 70.1 171.9
Analysed as:
Adjusted profit before tax 95.9 70.1 172.5
Exceptional building safety items 3 (0.1) 0.3 (0.1)
Amortisation of intangible assets (0.4) (0.3) (0.5)
Tax 4 (22.4) (17.5) (40.2)
Profit for the period 73.0 52.6 131.7
Attributable to:
Owners of the Company 73.0 52.6 131.7
Earnings per share
Basic 6 155.7p 113.1p 281.4p
Diluted 6 149.3p 110.0p 271.5p
There were no discontinued operations in either the current or comparative
periods.
Condensed consolidated statement of comprehensive income
For the six months ended 30 June 2025
Six months to Six months to Year ended
30 June 2025 30 June 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
£m £m £m
Profit for the period 73.0 52.6 131.7
Items that may be reclassified subsequently to profit or loss:
Foreign exchange movement on translation of overseas operations 0.1 - (0.3)
Net (loss)/gain arising on revaluation of cash flow hedges - - (0.1)
0.1 - (0.4)
Other comprehensive income/(expense) 0.1 - (0.4)
Total comprehensive income 73.1 52.6 131.3
Attributable to:
Owners of the Company 73.1 52.6 131.3
Condensed consolidated statement of financial position
At 30 June 2025
30 June 2025 30 June 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
Notes £m £m £m
Assets
Goodwill and other intangible assets 217.8 218.3 218.1
Property, plant and equipment 93.9 93.8 95.1
Investment property 0.6 0.8 0.6
Investments in joint ventures 7 136.7 121.1 111.9
Non-current assets 449.0 434.0 425.7
Inventories 559.5 417.3 476.0
Contract assets 302.9 332.1 224.6
Trade and other receivables 8 465.5 450.3 453.5
Current tax assets 6.7 2.9 6.6
Cash and cash equivalents 11 465.8 391.9 544.2
Current assets 1,800.4 1,594.5 1,704.9
Total assets 2,249.4 2,028.5 2,130.6
Liabilities
Contract liabilities (99.9) (97.8) (110.4)
Trade and other payables 9 (1,208.6) (1,116.6) (1,130.3)
Lease liabilities (22.5) (21.2) (22.6)
Borrowings 11 (76.3) (41.4) (51.8)
Provisions 10 (79.1) (70.4) (85.1)
Current liabilities (1,486.4) (1,347.4) (1,400.2)
Net current assets 314.0 247.1 304.7
Trade and other payables 9 (11.6) (24.9) (16.6)
Lease liabilities (48.7) (44.8) (44.1)
Deferred tax liabilities (2.1) (8.7) (2.1)
Provisions 10 (23.3) (22.6) (20.4)
Non-current liabilities (85.7) (101.0) (83.2)
Total liabilities (1,572.1) (1,448.4) (1,483.4)
Net assets 677.3 580.1 647.2
Equity
Share capital 2.4 2.4 2.4
Share premium account 65.8 56.1 65.7
Other reserves 1.0 1.3 0.9
Retained earnings 608.1 520.3 578.2
Equity attributable to owners of the Company 677.3 580.1 647.2
Total equity 677.3 580.1 647.2
Condensed consolidated cash flow statement
For the six months ended 30 June 2025
Six months to Six months to Year ended
30 June 2025 30 June 2024 31 Dec 2024
(unaudited) (unaudited) (audited)
Notes £m £m £m
Operating activities
Operating profit 91.3 65.5 162.0
Adjusted for:
Exceptional building safety items 3 (2.8) (2.8) 2.1
Amortisation of intangible assets 0.4 0.3 0.5
Underlying share of net profit of equity-accounted joint ventures 7 (1.8) 0.1 (4.6)
Depreciation 17.3 15.3 33.1
Impairment of property, plant and equipment 2.4 - -
Share-based payments 4.3 4.4 10.5
Gain on disposal of property, plant and equipment (0.2) (0.3) (0.7)
Reversal of impairment on investments in joint ventures - - (5.1)
(Decrease)/increase in provisions excluding exceptional building safety items 10 (0.2) 0.3 8.7
Operating cash inflow before movements in working capital 110.7 82.8 206.5
Increase in inventories (83.5) (72.6) (131.3)
(Increase)/decrease in contract assets (78.3) (61.5) 46.0
(Increase)/decrease in receivables (12.6) 10.9 7.8
(Decrease)/increase in contract liabilities (10.5) 2.0 14.6
Increase in payables 72.3 24.7 29.1
Movements in working capital (112.6) (96.5) (33.8)
Cash (outflow)/ inflow from operations (1.9) (13.7) 172.7
Income taxes paid (22.5) (22.3) (43.9)
Net cash (outflow)/inflow from operating activities (24.4) (36.0) 128.8
Investing activities
Interest received 8.4 8.9 18.0
Dividends from joint ventures 1.0 - 4.2
Proceeds on disposal of property, plant and equipment 0.8 0.3 1.9
Purchases of property, plant and equipment (3.4) (10.9) (18.2)
Purchases of intangible fixed assets (0.1) - -
Capital advances to joint ventures 7 (34.7) (24.1) (29.1)
Capital repayments from joint ventures 7 10.6 8.9 27.9
Net cash (outflow)/inflow from investing activities (17.4) (16.9) 4.7
Financing activities
Interest paid (0.6) (0.5) (1.9)
Dividends paid 5 (42.3) (36.5) (56.1)
Repayments of lease liabilities (13.2) (11.8) (25.8)
Proceeds on issue of share capital 0.1 0.1 9.7
Payments by the Trust to acquire shares in the Company (14.2) (22.2) (47.2)
Proceeds on exercise of share options 9.1 13.6 19.5
Net cash outflow from financing activities (61.1) (57.3) (101.8)
Net (decrease)/increase in cash and cash equivalents (102.9) (110.2) 31.7
Cash and cash equivalents at the beginning of the period 492.4 460.7 460.7
Cash and cash equivalents at the end of the period 11 389.5 350.5 492.4
Cash and cash equivalents presented in the consolidated cash flow statement
include bank overdrafts. See note 11 for a reconciliation to cash and cash
equivalents presented in the consolidated statement of financial position.
Condensed consolidated statement of changes in equity
For the six months ended 30 June 2025
Share Share premium account Other Retained Total
capital reserves earnings equity
£m £m £m £m £m
1 January 2025 2.4 65.7 0.9 578.2 647.2
Profit for the period - - - 73.0 73.0
Other comprehensive income - - 0.1 - 0.1
Total comprehensive (expense)/income - - 0.1 73.0 73.1
Share-based payments - - - 4.3 4.3
Issue of shares at a premium - 0.1 - - 0.1
Purchase of shares in the Company by the Trust - - - (14.2) (14.2)
Exercise of share options - - - 9.1 9.1
Dividends paid - - - (42.3) (42.3)
30 June 2025 (unaudited) 2.4 65.8 1.0 608.1 677.3
Share Share premium account Other Retained earnings Total
capital reserves equity
£m £m £m £m £m
1 January 2024 2.4 56.0 1.3 508.4 568.1
Profit for the period - - - 52.6 52.6
Total comprehensive income - - - 52.6 52.6
Share-based payments - - - 4.4 4.4
Issue of shares at a premium - 0.1 - - 0.1
Exercise of share options - - - 13.6 13.6
Purchase of shares in the Company by the Trust - - - (22.2) (22.2)
Dividends paid - - - (36.5) (36.5)
30 June 2024 (unaudited) 2.4 56.1 1.3 520.3 580.1
Share Share premium account Other Retained earnings Total
capital reserves equity
£m £m £m £m £m
1 January 2024 2.4 56.0 1.3 508.4 568.1
Profit for the year - - - 131.7 131.7
Other comprehensive income - - (0.4) - (0.4)
Total comprehensive income - - (0.4) 131.7 131.3
Share-based payments - - - 10.5 10.5
Tax relating to share-based payments (1) - - - 11.4 11.4
Issue of shares at a premium - 9.7 - - 9.7
Purchase of shares in the Company by the Trust - - - (47.2) (47.2)
Exercise of share options - - - 19.5 19.5
Dividends paid - - - (56.1) (56.1)
31 December 2024 (audited) 2.4 65.7 0.9 578.2 647.2
(1) Tax relating to share-based payments includes a current tax credit of
£5.8m and a deferred tax credit of £5.6m.
Other reserves
Other reserves include:
· Capital redemption reserve of £0.6m (30 June 2024: £0.6m, 31
December 2024: £0.6m) which was created on the redemption of preference
shares in 2003.
· Hedging reserve of £(0.9)m (30 June 2024: (£(0.8)m), 31 December
2024: (£(0.9)m) arising under cash flow and net investment hedge accounting.
Movements on the effective portion of hedges are recognised through the
hedging reserve, whilst any ineffectiveness is taken to the income
statement.
· Translation reserve of £1.3m (30 June 2024: £1.5m, 31 December
£2024: 1.2m) arising on the translation of overseas operations into the
Group's functional currency.
Retained earnings
Retained earnings include shares in Morgan Sindall Group plc purchased in the
market and held by the Morgan Sindall Employee Benefit Trust to satisfy
options under the Group's share incentive schemes. The number of shares held
by the Trust at 30 June 2025 was 1,027,669 (30 June 2024: 965,018, 31 December
2024: 1,241,722) with a cost of £56.6m (30 June 2024: £23.8mm, 31 December
2024: £51.5m).
Notes to the consolidated financial statements
For the six months ended 30 June 2025
Basis of preparation
General information
The financial information for the year ended 31 December 2024 set out in this
half year report does not constitute the Company's statutory accounts as
defined by section 434 of the Companies Act 2006. A copy of the statutory
accounts for that year was delivered to the Registrar of Companies. The
auditor reported on those accounts: their report was unqualified, did not draw
attention to any matters by way of emphasis without qualifying their report
and did not contain a statement under s498(2) or (3) of the Companies Act
2006. This half year report has not been audited or reviewed by the auditor
pursuant to the Auditing Practices Board guidance on the Review of Interim
Financial Information. Figures as at 30 June 2025 and 2024 and for the six
months ended 30 June 2025 and 2024 are therefore unaudited.
Basis of preparation
The annual financial statements of Morgan Sindall Group plc are prepared in
accordance with the requirements of the Companies Act 2006 and UK-adopted
international accounting and reporting standards (UK IAS). The condensed
consolidated financial statements included in this half year report were
prepared in accordance with IAS 34 'Interim Financial Reporting'. While the
financial information included in this half year report was prepared in
accordance with the recognition and measurement criteria of UK IAS, this half
year report does not itself contain sufficient information to comply with UK
IAS.
Going concern
As at 30 June 2025, the Group had cash of £465.8m and total overdrafts
repayable on demand of £76.3m (together net cash of £389.5m). Should further
funding be required the Group has total committed banking facilities of £180m
which are in place for greater than one year. The directors have reviewed the
Group's forecasts and projections and have modelled certain downside scenarios
which show that the Group will have a sufficient level of headroom within
facility limits and covenants for the going concern period, which the
directors have defined as the period from the date of approval of the 30 June
2025 financial statements through to 8 August 2026. After making enquiries the
directors have a reasonable expectation that the Company and the Group have
adequate resources to continue in operational existence for the going concern
period to 29 July 2026. Accordingly, they continue to adopt the going concern
basis in preparing the condensed consolidated financial statements.
Tax
A tax charge of £22.4m is shown for the six month period (six months to 30
June 2024: £17.5m, year ended 31 December 2024: £40.2m). This tax charge is
recognised based upon the best estimate of the average effective income tax
rate on profit before tax for the full financial year.
Changes in accounting policies
There have been no significant changes to accounting policies, presentation or
methods of preparation since the Group's latest annual audited financial
statements for the year ended 31 December 2024.
Seasonality
The Group's activities are generally not subject to significant seasonal
variation.
2 Business segments
For management purposes, the Group is organised into six operating divisions:
Partnership Housing, Mixed Use Partnerships, Fit Out, Construction,
Infrastructure and Property Services, and this is the structure of segment
information reviewed by the Chief Operating Decision Maker (CODM). The CODM is
determined to be the Board of directors and reporting provided to the Board is
in line with these six divisions, which have been considered to be the Group's
operating segments.
The six operating divisions' activities are as follows:
· Partnership Housing: Lovell Partnerships Limited is focused on
working in partnerships with local authorities and housing associations.
Activities include mixed-tenure developments, building and developing homes
for open market sales and for social/affordable rent, design and build house
contracting and planned maintenance and refurbishment.
· Mixed Use Partnerships: Muse Places Limited is focused on transforming
the urban landscape through partnership working and the development of
multi-phase sites and mixed-use regeneration.
· Fit Out: Overbury plc specialises in fit out and refurbishment in
commercial, central and local government offices and further education. Morgan
Lovell plc provides office interior design and build services direct to
occupiers.
· Construction: Morgan Sindall Construction focuses on education,
healthcare, commercial, industrial, leisure and retail markets.
· Infrastructure: Morgan Sindall Infrastructure focuses on energy,
nuclear, rail, highways, water and defence markets. Infrastructure also
includes the BakerHicks design activities based out of the UK and
Switzerland.
· Property Services: Morgan Sindall Property Services Limited provides
response and planned maintenance for social housing and the wider public
sector.
Group activities represent costs and income arising from corporate activities
which cannot be meaningfully allocated to the operating segments. These
include the costs of the Group Board, treasury management, corporate tax
coordination, Group finance and internal audit, insurance management, company
secretarial services, Group general counsel services, information technology
services, finance income and finance expense.
Six months to 30 June 2025
Partnership Housing Mixed Use Partnerships Fit Out Construction Infrastructure Property Services Group Activities Eliminations Total
£m £m £m £m £m £m £m £m £m
External revenue 404.7 25.9 837.1 522.8 474.8 104.2 - - 2,369.5
Inter-segment revenue - - 0.5 - 7.6 - - (8.1) -
Total revenue 404.7 25.9 837.6 522.8 482.4 104.2 - (8.1) 2,369.5
Adjusted operating profit/(loss) (Note 14) 13.2 (1.5) 58.1 16.1 18.4 0.5 (13.0) - 91.8
Amortisation of intangible assets - - - - - (0.4) - - (0.4)
Exceptional operating items - (0.1) - - - - - - (0.1)
Operating profit/(loss) 13.2 (1.6) 58.1 16.1 18.4 0.1 (13.0) - 91.3
Finance income 8.1
Finance expense (4.0)
Profit before tax 95.4
Six months to June 2024
Partnership Housing Mixed Use Partnerships Fit Out Construction Infrastructure Property Services Group Activities Eliminations Total
£m £m £m £m £m £m £m £m £m
External revenue 380.5 59.1 629.8 517.9 523.8 103.1 - - 2,214.2
Inter-segment revenue - - 0.6 0.6 6.3 - - (7.5) -
Total revenue 380.5 59.1 630.4 518.5 530.1 103.1 - (7.5) 2,214.2
Adjusted operating profit/(loss) (Note 14) 11.7 0.5 41.3 14.1 19.7 (11.0) (10.8) - 65.5
Amortisation of intangible assets - - - - - (0.3) - - (0.3)
Exceptional operating items - 0.3 - - - - - - 0.3
Operating profit/(loss) 11.7 0.8 41.3 14.1 19.7 (11.3) (10.8) - 65.5
Finance income 8.9
Finance expense (4.3)
Profit before tax 70.1
Year ended 31 December 2024
Partnership Housing Mixed Use Partnerships Fit Out Construction Infrastructure Property Services Group Activities Eliminations Total
£m £m £m £m £m £m £m £m £m
External revenue 855.9 90.5 1,299.2 1,043.3 1,034.1 223.2 - - 4,546.2
Inter-segment revenue 5.3 - 1.1 0.8 12.9 - - (20.1) -
Total revenue 861.2 90.5 1,300.3 1,044.1 1,047.0 223.2 - (20.1) 4,546.2
Impairment loss on contract assets - - - - - (21.0) - - (21.0)
Adjusted operating profit/(loss) (Note 14) 36.1 1.5 99.0 30.9 38.5 (17.8) (25.6) - 162.6
Amortisation of intangible assets - - - - - (0.5) - - (0.5)
Exceptional operating items (2.7) 5.9 - 0.1 - (3.4) - - (0.1)
Operating profit/(loss) 33.4 7.4 99.0 31.0 38.5 (21.7) (25.6) - 162.0
Finance income 18.2
Finance expense (8.3)
Profit before tax 171.9
During the period ended 30 June 2025, the period ended 30 June 2024, and the
year ended 31 December 2024, inter-segment sales were charged at prevailing
market prices and significantly all of the Group's operations were carried out
in the UK.
Segment assets and liabilities are not presented as these are not reported to
the CODM.
3 Exceptional building safety item
Six months to Six months to Year ended
30 June 2025 30 June 2024 31 Dec 2024
Notes £m £m £m
Net releases/(additions) on building safety provisions 10 - 0.9 (8.0)
Insurance and recoveries recognised in receivables - - 9.3
Exceptional building safety credit within cost of sales - 0.9 1.3
Exceptional building safety charge within joint ventures 7 (0.1) (0.6) (1.4)
Total exceptional building safety (charge)/credit (0.1) 0.3 (0.1)
In the current period, the legal and constructive obligations related to the
Pledge (including reimbursement of grants provided by the Building Safety
Fund), the Building Safety Act and associated fire safety regulations have
been reassessed based on further information. The overall movement in the
building safety items is a net charge of £0.1m and is shown separately as an
exceptional item consistent with prior year treatment.
As at 30 June 2025, the exceptional building safety credit was nil (30 June
2024: £0.3m, 31 December 2024: £0.1m charge) and a £0.1m charge (30 June
2024: £0.6m charge, 31 December 2024: £1.4m charge) has been recognised in
respect of the Group's share of constructive and legal obligations to
remediate legacy building safety issues within joint ventures, and this has
been recognised within the Group's share of net profit of joint ventures.
At the reporting date the Group had not yet made any reimbursements to the
Building Safety Fund for amounts previously granted and drawn on any of the
developments for which the Group has taken responsibility for. As notified by
the MHCLG, any repayments will only be requested upon final completion of all
the relevant works. On this basis, any repayments are only likely to commence
towards the middle of H2 2025 at the earliest.
4 Tax
The effective tax rate applied for the period was 23.5% (six months to 30 June
2024: 25.0%, year ended 31 December 2024: 23.4%). This reflects the
anticipated full year effective rate before adjusting items, as amended for
the tax effect of adjusting items incurred in the first half of the financial
year.
Deferred tax has been measured using the enacted rates that are expected to
apply to the period in which each asset or liability is expected to unwind.
The adjusted effective tax rate for the period was 25.0% (six months to 30
June 2024: 25.4%, year ended 31 December 2024: 24.3%) with the difference
between the reported and adjusted rates reflecting adjustments to exclude the
impact of the amortisation of intangibles and movements within exceptional
items.
5 Dividends
Amounts recognised as distributions to equity holders in the period:
Six months to Six months to Year ended
30 June 2025 30 June 2024 31 Dec 2024
£m £m £m
Final dividend for the year ended 31 December 2024 of 90p per share 42.3 - -
Final dividend for the year ended 31 December 2023 of 78.0p per share - 36.5 36.5
Interim dividend for the year ended 31 December 2024 of 41.5p per share - - 19.6
42.3 36.5 56.1
A proposed interim dividend of 50.0p per share for 2025 was approved by the
Board on 28 July 2025 and will be paid on 23 October 2025 to shareholders on
the register at 3 October 2025. The ex-dividend date is 2 October 2025.
6 Earnings per share
Six months to Six months to Year ended
30 June 2025 30 June 2024 31 Dec 2024
£m £m £m
Profit attributable to the owners of the Company 73.0 52.6 131.7
Adjustments:
Exceptional building safety items 0.1 (0.3) 0.1
Amortisation of intangible assets 0.4 0.3 0.5
Tax relating to the above adjustments (1.7) (0.3) (1.8)
Adjusted earnings 71.8 52.3 130.5
30 June 2025 30 June 2024 31 Dec 2024
Number of shares Number of shares Number of shares
(millions) (millions) (millions)
Basic weighted average number of ordinary shares 46.9 46.5 46.8
Dilutive effect of share options and conditional shares not vested 2.0 1.3 1.7
Diluted weighted average number of ordinary shares 48.9 47.8 48.5
Basic earnings per share 155.7p 113.1p 281.4p
Diluted earnings per share 149.3p 110.0p 271.5p
Adjusted earnings per share 153.1p 112.5p 278.8p
Diluted adjusted earnings per share 146.8p 109.4p 269.1p
The average market value of the Company's shares for the purpose of
calculating the dilutive effect of share options and long-term incentive plan
shares was based on quoted market prices for the period that the options were
outstanding. The average share price for the period was £36.01 (30 June 2024:
£23.36, 31 December 2024: £28.05).
A total of 598,962 share options that could potentially dilute earnings per
share in the future were excluded from the above calculations because they
were anti-dilutive at 30 June 2025 (30 June 2024: 1,416,101, 31 December 2024:
1,806).
7 Investments in joint ventures
Investments in equity-accounted joint ventures are as follows:
Six months to 30 June 2025 Six months to 30 June 2024 Year ended 31 Dec 2024
Notes £m £m £m
1 January 111.9 106.6 106.6
Equity-accounted share of net profits:
Underlying share of net profits 1.8 (0.1) 4.6
Exceptional building safety charge 3 (0.1) (0.6) (1.4)
1.7 (0.7) 3.2
Capital advances to joint ventures 34.7 24.1 29.1
Capital repayments by joint ventures (10.6) (8.9) (27.9)
Non-cash impairment reversal - other operating income - - 5.1
Dividends received (1.0) - (4.2)
End of period 136.7 121.1 111.9
During the period ended 30 June 2025, an exceptional building safety charge of
£0.1m (30 June 2024: £0.6m charge, 31 December 2024: £1.4m charge) has been
recognised in respect of the Group's share of constructive and legal
obligations to remediate legacy building safety issues within joint ventures.
8 Trade and other receivables
30 June 2025 30 June 2024 31 Dec 2024
£m £m £m
Amounts falling due within one year
Trade receivables 294.1 308.7 300.2
Amounts owed by joint ventures 15.7 17.7 15.8
Prepayments 25.4 24.0 16.1
Insurance receivables 23.5 10.8 23.1
Other receivables 33.5 29.2 29.0
392.2 390.4 384.2
Amounts falling due after more than one year
Trade receivables 73.3 59.9 69.3
73.3 59.9 69.3
Trade and other receivables 465.5 450.3 453.5
The Group holds third party insurances that may mitigate the contract and
legal liabilities described in note 10 - Provisions. Insurance receivables are
recognised when reimbursement from insurers is virtually certain.
9 Trade and other payables
30 June 2025 30 June 2024 31 Dec 2024
£m £m £m
Trade payables 244.0 228.9 211.1
Amounts owed to joint ventures 0.2 0.2 0.2
Other tax and social security 128.1 133.6 139.3
Accrued expenses 784.6 717.2 729.8
Deferred income 2.9 4.3 7.1
Land creditors 27.8 18.3 30.8
Other payables 21.0 14.1 12.0
Current 1,208.6 1,116.6 1,130.3
Land creditors 10.3 22.2 15.3
Other payables 1.3 2.7 1.3
Non-current 11.6 24.9 16.6
The directors consider that the carrying amount of trade payables approximates
to their fair value. No interest was incurred on outstanding balances.
10 Provisions
Building Safety Self-insurance Contract & legal Other Total
£m £m £m £m £m
1 January 2024 56.1 19.2 18.3 2.5 96.1
Utilised (2.5) (0.4) (3.5) - (6.4)
Additions 0.9 4.0 3.1 - 8.0
Released (1.8) (1.6) (0.2) (1.1) (4.7)
30 June 2024 52.7 21.2 17.7 1.4 93.0
Utilised (4.8) (0.9) (4.1) - (9.8)
Additions 11.0 0.3 18.4 1.1 30.8
Released (2.1) (1.4) (5.0) - (8.5)
1 January 2025 56.8 19.2 27.0 2.5 105.5
Utilised (2.8) (1.7) (2.1) (0.1) (6.7)
Additions - 3.5 3.7 0.2 7.4
Released - (0.2) (3.6) - (3.8)
30 June 2025 54.0 20.8 25.0 2.6 102.4
Current 54.0 - 25.0 0.1 79.1
Non-current - 20.8 - 2.5 23.3
30 June 2025 54.0 20.8 25.0 2.6 102.4
Building Safety provisions
Management have reviewed legal and constructive obligations arising from the
Developers Pledge, the Building Safety Act and other associated fire
regulations. Where obligations exist, these have been evaluated for the likely
cost to address, including repayments of the Building Safety Fund. As a result
of this review process provisions are recognised, as reported in the table
above, excluding those recognised in joint ventures. The provision is expected
to be utilised in the next two years, with repayments to the Building Safety
Fund commencing in H2 2025. See note 3 for further detail.
The Group also holds third party insurances that may mitigate the liabilities.
Third party insurance reimbursement in respect of these provisions has been
recognised as a separate asset, but only when the reimbursement is virtually
certain. See notes 3 and 8 for details of mitigating insurance receivables
recognised at the period end. Note 12 includes details of contingent
liabilities related to building safety.
Self-insurance provisions
Self-insurance provisions comprise the Group's self-insurance of certain risks
and include £12.2m (30 June 2024: £11.4m, 31 December 2024: £11.5m) held in
the Group's captive insurance company, Newman Insurance Company Limited (the
'Captive').
The Group makes provisions in respect of specific types of claims incurred but
not reported (IBNR). The valuation of IBNR considers past claims experience
and the risk profile of the Group. These are reviewed periodically and are
intended to provide a best estimate of the most likely or expected outcome.
Contract and legal provisions
Contract and legal provisions include liabilities, loss provisions, defect and
warranty provisions on contracts that have reached completion.
The Group also holds third party insurances that may mitigate the liabilities.
Third party insurance reimbursement is recognised as a separate asset, but
only when the reimbursement is virtually certain. See note 8 for details of
mitigating insurance assets recognised at the period end. Note 12 includes
details of contingent liabilities related to claims.
Other provisions
Other provisions include property dilapidations and other personnel related
provisions.
11 Net cash
30 June 2025 30 June 2024 31 Dec 2024
£m £m £m
Cash and cash equivalents 465.8 391.9 544.2
Bank overdrafts presented as borrowings due within one year (76.3) (41.4) (51.8)
Cash and cash equivalents reported in the consolidated cash flow statement 389.5 350.5 492.4
Net cash 389.5 350.5 492.4
Included within cash and cash equivalents is £26.5m which is the Group's
share of cash held within jointly controlled operations (30 June 2024:
£28.0m, 31 December 2024: £23.1m). There is £14.9m included within cash and
cash equivalents held for future payments to designated suppliers (30 June
2024: £21.9m, 31 December 2024: £26.0m).
The Group has £180m of committed loan facilities maturing more than one year
from the balance sheet date, of which £15m mature in June 2027 and £165m in
October 2027. These facilities are undrawn at 30 June 2025.
Average daily net cash during the period to 30 June 2025 was £353.7m (30 June
2024: £371.8m, 31 December 2024: £374.2m). Average daily net cash is defined
as the average of the period's end of day balances of the net cash (as defined
above) over the course of the reporting period. Management use this as a key
metric in monitoring the performance of the business.
12 Contingent liabilities
Group banking facilities and surety bond facilities are supported by cross
guarantees given by the Company and participating companies in the Group.
There are contingent liabilities in respect of surety bond facilities,
guarantees and claims under contracting and other arrangements, including
joint arrangements and joint ventures entered into in the normal course of
business.
Contingent liabilities may also arise in respect of subcontractor and other
third party claims made against the Group, in the normal course of trading.
These claims can include those relating to cladding/legacy fire safety
matters, and defects. A provision for such claims is only recognised to the
extent that the Directors believe that the Group has a legal or constructive
obligation as a result of a past event and it is probable that an outflow of
economic benefit will be required to settle the obligation. However, such
claims are predominantly covered by the Group's insurance arrangements.
Recoveries under insurance arrangements are recognised as insurance
receivables when they are considered virtually certain.
Building Safety
At 30 June 2025, provisions in respect of liabilities arising from the
Developers Pledge, the Building Safety Act and other associated fire
regulations totalled £61.0m (30 June 2024: £58.8m, 31 December 2024:
£63.7m), including those related to joint ventures.
The ongoing legislative and regulatory changes in respect of legacy building
safety issues create uncertainty around the extent of remediation required for
legacy buildings, the liability for such remediation, recoveries from other
parties and the time to be considered. It is possible that as remediation work
proceeds, additional remedial works are required that may not have been
identified from the reviews and physical inspections undertaken to date. The
scope of buildings and remediation works to be considered may also change as
legislation and regulations continue to evolve.
Uncertainties also exist in respect of the timing and extent of expected
recoveries from other third parties involved in developments.
13 Subsequent events
There were no subsequent events that affected the financial statements of the
Group.
14 Adjusted Performance Measures
In addition to monitoring and reviewing the financial performance of the
operating segments and the Group on a statutory basis, management also use
adjusted performance measures which are also disclosed in the annual report.
These measures are not an alternative or substitute to statutory IFRS measures
but are seen by management as useful in assessing the performance of the
business on a comparable basis. These financial measures are also aligned to
the measures used internally to assess business performance in the Group's
budgeting process and when determining compensation. The Group also uses other
non-statutory measures which cannot be derived directly from the financial
statements. There are four alternative performance measures used by management
and disclosure in the annual report which are:
'Adjusted'
In all cases the term 'adjusted' excludes the impact of intangible
amortisation and exceptional items. This is used to improve the
comparability of information between reporting periods and aid the reader's
understanding of the activities across the Group's portfolio.
Below is a reconciliation between the reported gross profit,
operating profit and profit before tax measures on a statutory basis and the
adjustment made to calculate adjusted gross profit, adjusted operating profit
and adjusted profit before tax.
Adjusted basic earnings per share and adjusted diluted
earnings per share are the statutory measures excluding the post-tax impact of
intangible amortisation and exceptional items, and the deferred tax charge
arising due to changes in UK corporation tax rates. See note 6 for a detailed
reconciliation of the adjusted earnings per share measures.
Gross profit
Six months to 30 June 2025 Six months to 30 June 2024 Year ended 31 Dec 2024
Note £m £m £m
Reported 275.2 236.2 529.9
Adjust for: exceptional building safety items(1) 3 - (0.9) (1.3)
Adjusted 275.2 235.3 528.6
Operating profit
Six months to 30 June 2025 Six months to 30 June 2024 Year ended 31 Dec 2024
Note £m £m £m
Reported 91.3 65.5 162.0
Adjust for: exceptional building safety items(1) 3 0.1 (0.3) 0.1
Adjust for: amortisation of intangible assets 0.4 0.3 0.5
Adjusted 91.8 65.5 162.6
Profit before tax
Six months to 30 June 2025 Six months to 30 June 2024 Year ended 31 Dec 2024
Note £m £m £m
Reported 95.4 70.1 171.9
Adjust for: exceptional building safety items(1) 3 0.1 (0.3) 0.1
Adjust for: amortisation of intangible assets 0.4 0.3 0.5
Adjusted 95.9 70.1 172.5
(1) The exceptional building safety items include amounts recognised in cost
of sales (£nil credit (30 June 2024: £0.9m credit, 31 December 2024: £1.3m
credit)) and share of net profit of joint ventures (£0.1m charge (30 June
2024: £0.6m charge, 31 December 2024: £1.4m charge)). See note 3.
'Net cash'
Net cash is defined as cash and cash equivalents less borrowings and
non-recourse project financing. Lease liabilities are not deducted from net
cash. A reconciliation of this number at the reporting date can be found in
note 11. In addition, management monitor and review average daily net cash as
good discipline in managing capital. Average daily net cash is defined as the
average of the period's end of day balances of the net cash over the course of
a reporting period.
'Operating cash flow' Management use an
adjusted measure for operating cash flow as it encompasses other cash flows
that are key to the ongoing operations of the Group such as repayments of
lease liabilities, investment in property, plant and equipment, investment in
intangible assets, and returns from equity accounted joint ventures. Operating
cash flow can be derived from the cash inflow from operations reported in the
consolidated cash flow statement as shown below.
Operating cash flow conversion is operating cash flow
divided by adjusted operating profit as defined above.
Six months to 30 June 2025 Six months to 30 June 2024 Year ended 31 Dec 2024
£m £m £m
Cash (outflow)/inflow from operations - reported (1.9) (13.7) 172.7
Dividends from joint ventures 1.0 - 4.2
Proceeds on disposal of property, plant and equipment 0.8 0.3 1.9
Purchases of property, plant and equipment (3.4) (10.9) (18.2)
Repayments of lease liabilities (13.2) (11.8) (25.8)
Operating cash flow (16.7) (36.1) 134.8
'Return on capital employed' Management use return on capital
employed (ROCE) in assessing the performance and efficient use of capital
within the Partnership activities. ROCE is calculated as adjusted operating
profit plus interest received from joint ventures divided by average capital
employed. Average capital employed is based on a 13-point average of total
assets (excluding goodwill, other intangible assets and cash) less total
liabilities (excluding corporation tax, deferred tax, intercompany financing
and overdrafts).
Responsibility Statement
The directors confirm that to the best of their knowledge:
(a) the unaudited condensed consolidated financial statements, which have
been prepared in accordance with UK adopted IAS 34 'Interim Financial
Reporting', give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Group as required by DTR 4.2.4R;
(b) the half year report includes a fair review of the information required
by DTR 4.2.7R (indication of important events during the first six months and
description of principal risks and uncertainties for the remaining six months
of the year); and
(c) the half year report includes a fair review of the information required
by DTR 4.2.8R (disclosure of related parties' transactions and changes
therein).
By order of the Board
John Morgan
Kelly Gangotra
Chief Executive Officer Chief Financial
Officer
29 July 2025
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR ZZGZNNRNGKZMRecent news on Morgan Sindall
See all newsREG - Morgan Sindall Grp - Total Voting Rights
AnnouncementREG - Morgan Sindall Grp - Results For the Half Year (HY) Ended 30 June 2025
AnnouncementREG - Morgan Sindall Grp - Holding(s) in Company
AnnouncementREG - Morgan Sindall Grp - Total Voting Rights
AnnouncementREG - Stock Exch Notice - Admission to Trading - 26/06/2025
Announcement