Morgan Sindall ups profit guidance and welcomes construction sector being open for lockdown 2

Construction group Morgan Sindall has upped profit guidance and welcomed that building work is still allowed to go on during the looming second lockdown.

‘Super-sewer’ builder Morgan Sindall, which is working on part of the Thames Tideway tunnel, said it expects to deliver a full-year performance “slightly above” the top end of the previous guidance range.

Pre-tax profits for the year to December had initially been expected to come in at £50 million-£60 million.

At the time of the half year results, the firm said there remained sufficient market uncertainty so as not to declare an interim dividend at that time. It has now declared an interim dividend of 21p per share to be paid in December.  

Many construction sites were closed at the start of the first lockdown in March as firms paused to make sure work could be done with social distancing rules in place.

Morgan Sindall today said that since its last update in August “momentum within the group's operations has continued to increase following the Covid-related disruption in the first half”.

The company added that it has noted the Prime Minister's announcement of further national lockdown restrictions across England commencing November 5, and “particularly welcomes the explicit statement that construction activity should continue throughout”.  

John Morgan, chief executive of Morgan Sindall, said: “Despite the uncertainty that the pandemic brings, we have a sound platform for future growth with the group geared towards future demand for affordable housing, urban regeneration and infrastructure and construction investment."