Construction giant Morgan Sindall 'knocked the first half out of the park'
Construction giant Morgan Sindall is on track for a hefty jump in profit thanks to a bright performance from its interior refurbishment business.
Pre-tax profits are expected to rise by 45% to £23.5 million for the six months ending in June, boosted by better-than-expected trading from its Fit Out unit, which overhauls office and retail space.
The firm, which has revenues of £2.6 billion and employs around 6,000 staff, was also helped by improved margins at its Construction and Infrastructure arm.
Shares were up more than 4% during morning trading on the London Stock Exchange, with the company predicting full-year results to be "significantly ahead" of expectations.
Jefferies analyst Anthony Codling said the company had "knocked the first half out of the park", with full-year pre-tax profits likely to come in at around £59 million, up 10% on previous estimates of £53 million.
He said: " When we awoke to another unscheduled trading update in the UK construction sector, our heart initially sank.
"However, our fears were unfounded. Morgan Sindall has delivered a first half significantly ahead of our expectations.
"The strength in Fit Out was no big surprise. We have seen performance ahead of expectations over the last 18 months, however that the strength has been sustained remains an impressive feat in itself, especially as the strength of Fit Out will also feature in the second half."
The company will announce its half-year results on August 8.