As post-covid adjustments to workplaces continues, companies engaged in office fit-outs continue to prosper.
And now more so that Morgan Sindall, whose fit-out business grew by 33% in the first half of 2025.
Morgan Sindall Group results for  the six months to 30th June 2025 show record revenue up 7% to £2,369m (2024 H1: £2,214m) and profit before tax up 36% to £95.4m (2024 H1: £70.1m).
Revenue from the Overbury fit-out operations grew by 33% on last year to £838m for the period compared to 1% revenue growth of Morgan Sindall Construction to £523m and 6% growth for the Morgan Lovell partnership housing division to £405m.
Fit-out is also the most profitable part of the business, accounting for 63% (£58m) of total group operating profits (£92m) during the half-year period.
Morgan Sindall’s growth looks set to continue for a while yet, given that over the past year the secured order book has grown from £8.7bn to £12.0bn.
Given these results, the board has raised its medium-term targets. The fit-out target is now to make an annual operating profit of between £80m and £100m. (It was previously £60m-£85m).
The new medium-term target for Morgan Sindall Construction is an operating margin of between 3.0% and 3.5% and year on revenue of more than £1.5bn. (Previously it was 3.0-3.5% pa on revenue of £1bn.)
Group chief executive John Morgan said: "It has been another record half year for the Morgan Sindall Group. These results further demonstrate our track record of delivering strong revenue and profit growth, supported by robust cash generation, enabling continued investment in our Partnership businesses, while importantly supporting strong dividend growth.
"In the period, we have continued to make significant strategic and operational progress across the group. Expectations for the group are underpinned by the medium-term fundamentals for Fit Out which are expected to remain favourable, together with both our UK construction and partnership programmes which expect to benefit from the recent government investment commitments. As a result, we have increased the medium-term targets for both the Fit Out and Construction divisions.
"The strength of our first half performance, together with the visibility provided by our high-quality and growing order book for the remainder of the year, places us in a strong position to deliver an outcome for 2025 which is in line with our current expectations."
Net cash at the end of the period was £390m (HY 2024: £351m) and the average daily net cash for the six months was £354m (HY 2024: £372m).
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