Morgan Sindall soaring after knockout leap

Builder Morgan Sindall “knocked the first half out of the park” today, providing some much-needed cheer from the City’s listed builders after the woes engulfing larger rival Carillion.

Its shares jumped 6%, or 72.8p, to 1292p after the unscheduled profit upgrade from the company, which counts office fit-outs for the likes of Schroders and Deloitte among its major projects.

As well as London the fit-out business is benefiting from orders outside the capital, where banks and lawyers have been “nearshoring” back-office staff.

Chief executive John Morgan said: “Some people thought with Brexit our business would slow down but we are doing really well and we have got good visibility this year. We’ve been doing a lot more for the Government and we are doing more in the regions, in particular Birmingham and Manchester.”

Expected first-half profits of £23.5 million will come in around 45% ahead of last year as margins also improved in its construction business.

Jefferies analyst Anthony Codling said: “Morgan Sindall has knocked the first half out of the park... After recent events in the sector, strong performance in this sector is something to write home about.”