Morgan Sindall hikes dividend following strong half

Construction and regeneration group Morgan Sindall raised its interim dividend on Wednesday after first-half profits were boosted by a massive improvement in its urban regeneration division.

Despite a 6% hit to its order book due to a switch in the group's focus to higher margin contracts, Morgan Sindall saw adjusted operating profits jump 28% to £31.9m over the six months up to 30 June.

Revenues also got a 9% boost to £1.4bn.

The London-based firm hiked its dividend 19% to 19p on the back of a strong showing from its construction and infrastructure wing, which saw operating margins jump 1.7%.

Morgan Sindall's urban regeneration division performed well, with profits soaring 205% to £6.1m in the first half of 2018.

John Morgan, the group's chief executive, said, "There remain a significant number of opportunities in regeneration and our strong balance sheet and cash position leave us well-placed to invest further in this key strategic area."

"The group is on track to deliver a result for the year which is slightly ahead of its previous expectations," he added.

As of 1430 BST, Morgan Sindall shares had jumped 2.38% to 1,460p.