Morgan Sindall interim profits 'significantly impacted' by Covid-19, expects H2 surge

Construction and regeneration group Morgan Sindall cautioned on Wednesday that first-half results had been "significantly impacted" by the Covid-19 pandemic but predicted a bounce-back during the second half as its sites returned to 95% productivity.

Interim revenues were down 4% year-on-year to £1.36bn, principally due to a 23% decline in the second quarter, while pre-tax profits tumbled 62% to £13.6m.

Basic earnings per share were also down 62% at 23.7p but the group ended the group with net cash of £146m - a year-on-year increase of £32m.

However, Morgan Sindall maintained the firm had demonstrated its resilience throughout the period, with an improved cash position strengthening its balance sheet and providing "significant available liquidity".

The FTSE 250-listed company also stated it now had "greater clarity" as to the extent of the impact of Covid-19 on its 2020 performance and, assuming no further significant business interruptions take place due to any form of widespread secondary lockdowns, it expects full-year profits before tax for to be in the range of £50m-£60m.

Morgan Sindall, which will pay no dividend for the six months ended 30 June, highlighted that its current order book now stood at £7.96bn – up 5% from the year-end.

As of 0825 BST, Morgan Sindall shares were up 8.15% at 1,124.80p.