Morgan Sindall Group – after an excellent 60% share price climb since March, will next week’s Interims boost it even further?

24.07.2025

Next Tuesday morning, 29^th July, will see the Morgan Sindall Group (LON:MGNS) report its Interim Results to end-June this year. 

We have already been given strong guidance by the Partnerships, Fit Out and Construction Services group, that its Management is anticipating that its full-year results for 2025 will be significantly ahead of its previous expectations.

It is a group of specialist businesses, delivering housing and mixed-use partnership schemes, fit out and construction services across the UK for the public, commercial and regulated sectors.

The Business

The Morgan Sindall Group is a leading Partnerships, Fit Out and Construction Services group, 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.

The group’s strategy is focused on its well-established core strengths of Partnerships, Fit Out, and Construction Services; each of which represent a balanced business which is geared to support the increasing demand for affordable housing, mixed use place making, office space fit out, infrastructure and construction investment.

The Fit Out division generates cash, so too does Construction Services, while the Partnerships segment invests cash for long-term value and construction opportunities.

Improving Trading Updates

Towards the end of March, the group declared that since the group announced its full year results in late February, its Fit Out division had experienced an acceleration in its trading momentum and was now expected to exceed both the group's previous expectations and the top-end of its targets.

Elsewhere, all other divisions were broadly on track to perform in line with the group's previous guidance and expectations.

As a result, the group now anticipates that its full year results for 2025 will be slightly ahead of market consensus – which were for £178.0m of adjusted pre-tax profits for the year.

Then on Thursday, 1^st May, just ahead of the group’s AGM, it updated on its trading and the outlook for the 2025 financial year.

At that time CEO John Morgan stated that:

"Since the start of the year, trading has been better than we originally expected and looking ahead to the rest of the year, our high-quality secured order book gives us strong confidence of delivering a full year performance in line with our current expectations."

The good news continued - just over a month ago, on Tuesday 17^th June, the group issued another Trading Update stating that the group’s pre-tax profit was expected to be significantly ahead of previous expectations.

Analyst Opinions

There are some six analysts following the group, four of whom rate the shares as a Buy, one says Hold while the other rates them to Outperform.

The average consensus Target Price is £46.80, with the Highest going for £50.00, the lowest just £40.00.

Estimates are for the current year sales to end-December of £4,979m (£4,546m), with profits of £178.0m.

In My View

This group’s shares are one of the market’s heavyweights, insomuch that they are trading at around the £46 level.

However, it is a ‘quality’ operation, valued at some £2.14bn.

In March, its shares were down to £29 each, the subsequent 60% price advance has been fairly gradual, running alongside the various Trading Updates and market guidance’s.

The question now is just what next Tuesday’s Interim announcement will reveal – could it be more good news?