Morgan Sindall Group Plc · LSE:MGNS
Morgan Sindall — H1 2025 Earnings Presentation
43 slides from Morgan Sindall's earnings presentation, Jul 29, 2025
Slide 1: Half Year 2025 Results Presentation
Half Year 2025 Results Presentation to 30th June 2025 29th July 2025
Slide 2: Agenda
Agenda • Group highlights – John Morgan • Financial & operational review – Kelly Gangotra • Markets & outlook – John Morgan • Partnerships – Steve Coleby & Phil Mayall • Summary – John Morgan • Q&A Half Year Results 2025 Page 2
Slide 3: Group Highlights
Name London Gateway, Group GroupHighlights MUSE Project Highlights Muse, Lewisham John JohnMorgan Morgan
Slide 4: Group Highlights
Group Highlights £2.4bn +7% 4.0% +80bps Group revenue PBTA Margin £95.9m +37% £17.8bn +24% Adjusted profit before tax Orderbook& preferred bidder 50.0p +20% £390m +£39m Interim Dividend Period end Cash Half Year Results 2025 Page 4
Slide 5: 10-year historical long-term performance
10-year historical long-term performance Adjusted PBTA1 2015 - 2025 Total dividend (p) 2015 - 2024 10-yr historical PBTA CAGR 18% 10-yr historical Dividend CAGR 16.3% 140 220 130 200 120 180 110 160 100 Pence per share 90 140 80 120 £m 70 100 60 80 50 Covid impact 40 60 30 40 Covid impact2 20 20 10
Slide 6: Financial and Operational Review
Name Institute, London Project Crick Financial Financialand andOperational OperationalReview Francis Review Kelly KellyGangotra MUSE Gangotra Fit Out, The
Slide 7: Summary of Group results
Summary of Group results Adjusted1 Basis £m 30 June 2025 30 June 2024 Change Revenue 2,370 2,214 +7% Operating Profit 91.8 65.5 +40% Operating Margin 3.9% 3.0% +90bps Net interest 4.1 4.6 n/a Profit before tax 95.9 70.1 +37% PBTA margin 4.0% 3.2% +80bps Tax (24.1) (17.8) +35% Profit after tax 71.8 5
Slide 8: Summary by division
Summary by division Revenue Operating Proft / Operating Margin1 (Loss)1 £m Change £m Change £m Change Partnership Housing 405 +6% 13.2 +13% 3.3% +20bps Mixed Use Partnerships 26 -56% (1.5) n/a - n/a Fit Out 838 +33% 58.1 41% 6.9% +30bps Construction 523 +1% 16.1 14% 3.1% +40bps Property Services 104
Slide 9: Secured Order Book and Preferred Bidder
Secured Order Book and Preferred Bidder Group secured Preferred bidder Total secured and order book preferred bidder Partnerships £6.8bn £3.5bn £10.3bn (+73% HY 2024) (-10% HY 2024) (+31% HY 2024) Fit Out £1.4bn £0.3bn £1.7bn (+19% HY 2024) (+41% HY 2024) (+23% HY 2024) Construction Services £3.8bn
Slide 10: Net Cash movement
Net Cash movement Operating cash outflow of £17m as investment in Partnership activities continues £15m (£128m) £92m £4m (£15m) £492m £461m (£42m) (£28m) Operating cash outflow £17m £390m Opening Adjusted Construction Services Net Other cash / Tax / Interest Ordinary Other Closing Cash operating & F
Slide 11: Daily net cash balance
Daily net cash balance 600 MAX: £499m 550 500 450 400 350 300 250 200 £m 150 100 MIN: £270m 50 - (50) (100) 1 Jan 30 Jun 31 Dec (150) (200) (250) 2024 2025 Total Committed Facilities • Period end net cash of £390m (HY 2024: £351m) • Average daily net cash of £354m (HY 2024: £372m) • FY 2025 average
Slide 12: Divisional Performance
Kelly Financial Divisional Divisional and Gangotra Review Performance Operational Review Lovell, Nar Valley MUSE Park, Project Norfolk Name Lovell, NORA 4, Nar Valley Park, King's Lynn Norfolk
Slide 13: Partnership Housing
Partnership Housing Adjusted1 Basis £m HY 25 Change Revenue 405 +6% Operating Profit 13.2 +13% Lovell, NORA 4, Nar Valley Park, King's Lynn Norfolk Operating Margin 3.3% +20bps Secured order book 2,198 +6% Average capital employed1 £393m +£104m ROCE1 10% -100bps • Award of two new partnership scheme
Slide 14: Mixed Use Partnerships
Mixed Use Partnerships Adjusted1 Basis £m HY 25 Change Revenue 26 -56% Operating Profit1 (1.5) n/a Secured order book 4,584 +150% Average capital employed2 £102m +£12m ROCE1&2 - 0.5% n/a Muse, Lewisham Gateway, London • c£6m of direct scheme investment costs expensed where no profit is yet recognise
Slide 15: Fit Out
Fit Out Adjusted Basis £m HY 25 Change Revenue 838 +33% Operating Profit 58.1 +41% Operating Margin 6.9% +30bps Secured order book 1,445 +19% Fit Out, Durham University Business School • Excellent track record of achieving strong results through laser focus on both project delivery and customer expe
Slide 16: Construction
Construction Construction, School of Veterinary Medicine, University of Central Lancashire Adjusted Basis £m HY 25 Change Revenue 523 +1% Operating Profit 16.1 +14% Operating Margin 3.1% +40bps Secured order book 1,129 +32% • Risk management continues to be exercised strongly from pre-construction s
Slide 17: Infrastructure
Infrastructure Adjusted Basis £m HY 25 Change Revenue 482 -9% Operating Profit 18.4 -7% Operating Margin 3.8% +10bps Secured order book 1,873 +11% Infrastructure, Northumberland Line Project • Planning & design work during the ECI1 phase for a large number of recently awarded frameworks impacting re
Slide 18: Property Services
Property Services Adjusted Basis £m HY 25 Change Revenue 104 +1% Operating Profit1 0.5 n/a Operating Margin1 0.5% n/a Secured order book2 781 -22% • Key priority for 2025 is to maintain business stabilisation following the completion of the remediation programme in 2024 • Move towards a rebalancing
Slide 19: Markets & Outlook
Road, Kensington & Chelsea Project Name MUSE Acklam Financial and Operational Review Partnerships Divisional Kelly Performance Gangotra Markets & Outlook Construction, Steve Coleby & Phil Mayall John Morgan
Slide 20: Market Conditions
Market Conditions Overall, a net positive set of conditions Tailwinds Headwinds Fit Out market • Medium-term fundamentals for Fit Out Housing • Not as strong as expected at the start of the expected to remain favourable demand year, strong support for the medium-term fundamentals Spending • £16bn Na
Slide 21: Medium-Term Targets
Medium-Term Targets Division Medium Term Targets Partnership Housing Operating margin of 8%, ROCE up towards 25% Mixed Use Partnerships Annual ROCE up towards 25% Fit Out Annual operating profit £80m - £100m (previously £60m - £85m) Construction Operating margin of 3.0% - 3.5% pa, revenue > £1.5bn1
Slide 22: 2025 Outlook by Division
2025 Outlook by Division Division 2025 Outlook Partnership Housing Solid profit growth expected, ROCE slightly lower than 2024 levels as we continue to invest Mixed Use Partnerships Close to break even this year as we continue to invest in new schemes Fit Out Profit to significantly exceed the top e
Slide 23: Overview of Partnerships
Overview of Partnerships Partnership Housing Mixed Use Partnerships • Profit from house sales and contracting • Profit from share of equity and development management fees • National business • National business • Developer and contractor • Developer only • Partnerships are with Housing Associations
Slide 24: Partnerships
Tottenham Name Financial and Operational Review Project Wharf, Partnerships Divisional Kelly Performance Gangotra MUSE Muse, Hale Steve Coleby & Phil Mayall
Slide 25: Partnership Housing: Investing for future growth
Partnership Housing Investing for future growth £2.8bn orderbook1 £3.5bn orderbook1 3,130 homes built 4,788 homes built 48 active sites FY 61 active sites FY 8 regions 2022 10 regions 2024 £156m average CE £255m average CE 21% ROCE 12% ROCE £3.4bn orderbook1 £4.0bn orderb
Slide 26: Near term secured project – Barnet
Near term secured project – Barnet In a 10-yr partnership with Barnet Council delivering 1,200 homes Indicative investment profile - Initial GDV £100m, being our share - Opportunity to add further sites over the 10-year partnership period - Potential GDV may increase to £255m - Peak capital investme
Slide 27: Near to medium-term project - Suffolk
Near to medium-term project - Suffolk Delivering 2,800 homes in partnership with Suffolk County Council over 10 years Indicative investment profile - Consists of five sites, with only 1 small site being included in the secured orderbook - GDV £505m, being our share - Peak capital investment £25m Pre
Slide 28: Near to medium-term project – Cardiff & Vale
Near to medium-term project – Cardiff & Vale Delivering 2,300 homes in partnership with Cardiff & Vale of Glamorgan over 10 years Indicative investment profile - GDV £540m, being our share - Delivery of over 50% new Council housing - Consists of 24 sites to be completed between 2026 - 2033 - Peak ca
Slide 29: Mixed Use Partnerships
Mixed Use Partnerships Significant demand for partnerships to regenerate towns & cities FY FY FY FY 2021 2022 2023 2024 • £2.6bn orderbook1 • £3.7bn orderbook1 • £4.2bn orderbook1 • £4.8bn orderbook1 • 14 projects on site • 16 projects on site • 12 projects on site • 5 projects on site (£0.6bn GDV)
Slide 30: Medium-term project – Aykley Heads, Durham
Medium-term project – Aykley Heads, Durham 10-year partnership with Durham County Council Indicative investment profile - Development of a 400k sq ft Innovation District - Demolition of existing Council offices, as well as a collaboration agreement with Durham University - Working on 4 Phases, the f
Slide 31: Near term project – Mell Square, Solihull
Near term project – Mell Square, Solihull 10-year partnership with Solihull Council for the redevelopment of existing shopping centre Indicative investment profile - Development to include delivery of new retail, food and beverage venues and c1,400 homes - Consists of six phases, the first of which
Slide 32: Medium-term project – North West Quadrant, Slough
Medium-term project – North West Quadrant, Slough 15-year partnership with Slough Borough Council and ECF1 Indicative investment profile - Development of 10-acre site comprising of 200k ‘Grade A’ office space and c1,600 homes over multiple phases - Consists of 14 buildings, Phase 1 expected start on
Slide 33: Summary
Summary John Morgan Construction, King Hemry VIII School, Abergavenny
Slide 34: Summary
Summary • Long term organic growth strategy remains unchanged • Strong balance sheet and substantial net cash at all times • Medium-term fundamentals for Fit Out expected to remain favourable • Increased medium-term targets for Fit Out and Construction • On track to deliver results for 2025, in line
Slide 35: Questions
Questions Half Year Results 2025 Page 35
Slide 36: Appendices
Appendices Half Year Results 2025 Page 36
Slide 37: Net Finance Income
Net Finance Income £m HY 25 HY 24 Interest income on bank deposits 7.9 8.9 Interest receivable from joint ventures 0.2 - Loan arrangement and commitment fees (1.0) (1.0) Interest expense on lease liabilities (IFRS 16) (2.0) (1.8) Other (1.0) (1.5) Total Group 4.1 4.6 Half Year Results 2025 Page 37
Slide 38: Adjusted earnings per share
Adjusted earnings per share £m HY 25 HY 24 Profit after tax 73.0 52.6 Adjusted for: Exceptional operating items 0.1 (0.3) Amortisation of intangible assets 0.4 0.3 Tax relating to the above items (Includes prior year adjustment on exceptional items) (1.7) (0.3) Adjusted earnings after tax 71.8 52.3
Slide 39: Tax
Tax £m HY 25 HY 24 Profit before tax 95.4 70.1 Less: share of underlying1 net profits from JVs (1.8) 0.1 Profit subject to tax 93.6 70.2 Statutory tax rate 25.0% 25.0% Current tax charge at statutory rate (23.4) (17.6) Tax on underlying1 joint venture profits2 (0.5) - Tax on exceptional items 1.6 0.
Slide 40: Capital Employed - Partnerships
Capital Employed - Partnerships £m Total Partnership Mixed Use Partnerships Housing Partnerships Total net land & Partnership WIP 485.5 399.9 85.6 Unsold completed units (excl. joint ventures) 35.6 35.6 - Amounts invested in joint ventures1 144.6 96.9 47.7 Shared equity loans and investment properti
Slide 41: Provisions
Provisions £m Total Building Safety Other Provisions as at 31 December 2024 105.5 56.8 48.7 Additions 7.4 0.0 7.4 Utilised (6.7) (2.8) (3.9) Released (3.8) 0.0 (3.8) Provisions as at 30 June 2025 102.4 54.0 48.4 Half Year Results 2025 Page 41
Slide 42: Summary balance sheet
Summary balance sheet £m 30 June 2025 31 December 2024 Intangibles 217.8 218.1 PP&E 93.9 95.1 Investments (including JVs)1 137.3 112.5 Net working capital2 6.8 (104.9) Current and deferred tax 4.6 4.5 Net cash 389.5 492.4 Lease liabilities (71.2) (66.7) Provisions1 (102.4) (105.5) Other3 1.0 1.8 Net
Slide 43: Payment practices
Payment practices £m Average time to pay Invoices not paid Invoices paid within invoices with agreed terms 60 days Construction & Infrastructure1 25 days 4% 98% - 1% - Fit Out 20 days 5% 98% 1 day - - Property Services 34 days 5% 100% 4 days - 1% Partnership Housing 31 days 12% 97% - 2% 1% Note: mov