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Highlights

  • Two brokers have issued Buy ratings on Morgan Sindall Group.
  • Group’s total secured order book stands at £12.2bn, 7% higher than 2024 year-end.
  • Fit Out division profits expected to significantly exceed previous expectations, underpinning growth outlook.

Morgan Sindall Group PLC (LSE:MGNS) has received Buy ratings from two brokers. Berenberg’s analyst has assigned a Buy rating with a price target of 5,250.00 GBP, while Investec Bank (UK) PLC’s analyst has given a Buy recommendation with a price target of 5,200.00 GBP. The ratings coincide with Morgan Sindall Group’s trading update for the 2025 financial year, which indicates results are expected to be significantly ahead of previous expectations.

Trading Update and Outlook

Since the Half-Year Trading Announcement in July 2025, Morgan Sindall Group has reported improved performance in its Fit Out division, which has exceeded the Group’s previous profit expectations. As of 31 August 2025, the Fit Out division’s secured order book reached £1.6bn. Ou of this £900m relates to 2026 and beyond, representing an 8% increase.

The Partnerships Housing division remains in line with previous guidance, maintaining long-term agreements with public sector partners.

Mixed Use Partnerships is expected to incur higher second-half operating losses due to increased investment costs, with the full-year average capital employed projected between £115m and £125m. Construction and Infrastructure divisions are on track to deliver profits in line with prior guidance, supported by growing order books, while Property Services is forecasted to generate a modest profit for the year.

Order Book and Financial Position

The Group’s total secured order book on 31 August 2025 stands at £12.2bn, marking a 2% increase from the half-year and a 7% rise compared to the 2024 year-end. Daily average net cash for the period 1 January to 30 September 2025 was £361m, slightly below the £372m recorded in the same period last year. Average daily net cash is anticipated to exceed £350m in full year, ahead of prior guidance of £330m.