Morgan Sindall: Construction giant enjoys ‘record’ year, hopes for lower rates to boost industry

Construction and regeneration giant Morgan Sindall enjoyed “another record year” with a 14 per cent boost in its revenue, as it looks ahead to lower rates

The company reported £4.1bn in revenue for the full year up to 31 December 23, up from £3.6bn in the previous year.

It told markets this morning, that operating profit increased two per cent to £141m while earnings per share rose 92 per cent. It hiked its full-year dividend by 13 per cent.

It owed its strong set of results to the “diversified nature of our operations” with its ‘Fit Out’ service having an operating profit up 38 per cent and its construction revenue up 18 per cent to £967m.

This comes after record-high interest rates put the stoppers on many Brits looking to buy a home and get a mortgage. There has also been a slowdown in the housing construction sector, with a chronic shortage in London especially keeping prices high.

With the Bank of England set to lower rates this year, prospective homeowners are looking to wait off until they come down, to lower borrowing costs.

Morgan Sindall’s share price has been booming in the last 12 months, up more than 35 per cent.

Chief Executive, John Morgan said: “2023 was another record year for the group and these strong results reflect the high quality of our operations and the talent and commitment of our people.

“Despite facing market headwinds in the year and the disappointing losses in property services, the diversified nature of our operations and capabilities has allowed us to continue to make significant strategic and operational progress.

He added that “our strong balance sheet has positioned us well to benefit over the long term from the opportunities available in our markets.”

“Looking ahead, while there remains some uncertainty in the wider economy, reducing inflation and the prospect of lower interest rates provides a backdrop of confidence for the year ahead.

“Together with our high-quality and growing order book spread across a wide number of sectors covering the built environment, we are well-positioned for the future and on track to deliver a result for 2024 which is in line with our current expectations.”