UK construction group Morgan Sindall lifts profit outlook, shares jump
16/04/2026 09:22
April 16 (Reuters) - British construction firm Morgan Sindall MGNS.L on Thursday forecast annual profit to be significantly ahead of its previous expectations, driven by strong demand in its commercial-focused building and finishing businesses, sending shares up about 11%. The outlook upgrade underscores uneven performance across the group, with strength in the Fit Out and Construction businesses helping offset continued weakness in private housing. Here are some details: • The Fit Out division, which handles interior finishing and equipping of buildings, is now expected to exceed the top end of its medium-term profit target of 80 million pounds to 100 million pounds ($108.55 million-$135.69 million), aided by stronger conversion of preferred-bidder work and new tenders • Construction division's operating margin is forecast to reach the top end of its 3.0%-3.5% target range, with revenue expected towards 1.4 billion pounds driven by a high-quality orderbook • However, profit in Partnership Housing, a specialized division that delivers mixed-tenure, affordable, and social housing projects, is expected to show modest growth compared to 42 million pounds reported in the prior year • The group's average daily net cash for the full year is expected to exceed 400 million pounds, in line with previous guidance Shares in the London-headquartered firm rose as much as 11.1% to 49.78 pounds, their biggest one-day percentage gain since October 2025 ($1 = 0.7366 pounds) (Reporting by DhanushVignesh Babu in Bengaluru; Editing by Eileen Soreng) ((DhanushVignesh.Babu@thomsonreuters.com))