By Steve Goldstein
Shares of Morgan Sindall rose as much as 19% on Thursday, as the midcap U.K. construction group said its full-year performance will be “significantly” ahead of expectations.
Morgan Sindall /zigman2/quotes/207608205/delayed UK:MGNS +1.29% previously guided for a result “slightly ahead of that delivered in 2019,” when its adjusted operating profit was £93.1 million on sales of £3.07 billion. At the end of March, analysts had forecast a profit of £96.1 million on sales of £3.14 billion, according to FactSet.
It said its construction division had an order book up 10%, and its fit-out unit saw an 18% surge in order activity. “Since the start of the year, the positive momentum across the group has continued to accelerate, and with the group geared towards demand for affordable housing, urban regeneration and infrastructure and construction investment, I am excited by the significant opportunities ahead,” said its chief executive, John Morgan.
The large-cap FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.76% rose 0.3% in late afternoon action. Alcoholic-beverage maker Diageo /zigman2/quotes/205611832/delayed UK:DGE +0.23% and credit-checker Experian /zigman2/quotes/210252954/delayed UK:EXPN +1.25% had the largest upward pull on the FTSE 100, while oil giants Royal Dutch Shell /zigman2/quotes/204253697/delayed UK:RDSB -0.23% and BP /zigman2/quotes/202286639/delayed UK:BP -0.40% edged lower.