The first half of 2025 has been another record year for Morgan Sindall Group, these results further demonstrate the Group's 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.

The Group delivered a strong trading performance in the first half of 2025, with a significant contribution from the Fit Out division. Group revenue increased by 7% up to £2,370m (HY 2024: £2,214m), while adjusted operating profit increased by 40% to £91.8m (HY 2024: £65.5m). Adjusted operating margin was 3.9%, 90bps higher than the prior year (HY 2024: 3.0%).

The Group continued to benefit from elevated interest rates, albeit on a slightly lower average net cash profile, resulting in a slightly lower level of net finance income of £4.1m compared to the prior period (HY 2024: £4.6m). Adjusted profit before tax was up 37% to £95.9m (HY 2024: £70.1m).

Summary of Morgan Sindall Infrastructure's first half of 2025

Following its strong work winning successes in the prior year, Infrastructure's trading performance in the first half for both revenue and profits reflected the early phasing and nature of projects delivered through these recently awarded large frameworks, while still ensuring a high-quality operational delivery across its existing contract portfolio. Revenue decreased by 9% to £482m (HY 2024: £530m) with operating profit declining by 7% to £18.4m (HY 2024: £19.7m), while its operating margin expanded by 10 basis points to 3.8% compared to this time last year. (HY 2024: 3.7%).

Infrastructure's order book of £1,873m was 11% up compared to the prior period (HY 2024: £1,682m), with a further £668m of work at preferred bidder stage. The order book continues to remain long term in nature, with around 98% derived through existing frameworks. The division remains focused on the key sectors of energy, nuclear, rail, highways, water and defence. Its markets have significant long-term committed investment programmes in place, largely driven by government and regulatory objectives. The division continues to see its clients awarding large long-term frameworks to its delivery partners, with projects focused on delivering the strategic outcomes over the term of the framework. 

Morgan Sindall Infrastructure's project summary from the first half of 2025

Following ScottishPower's £5.4bn partnership announcement at the end 2024, the division has been appointed as the sole contractor for the Denny to Wishaw Network Optimisation project in the Early Contractor Involvement phase. In addition, they have secured the substation portfolio for the North West region as part of National Grid's Electricity Transmission Partnership.

Elsewhere the division made good progress on a number of key projects, including a project on the Shetland Islands which is reaching completion. The project for Scottish & Southern Electricity Network (SSEN) will play a key role in the connection of the Viking wind farm, capable of generating 500MW. The energy business also continues to make progress on a number of schemes for National Grid Electricity Transmission along with growth on the Great Grid Partnership. The division's nuclear business unit continues to progress with the Electrical Upgrade programme at Sellafield, along with the Programme and Project Partners Sellafield Product and Residue Store Retreatment Plant (SRP) achieving a major milestone with the topping off of the 30m high roof. 

In Rail, works are progressing well on the Beckton Depot upgrade for Transport for London along with Surrey Quays and Colindale stations. Work is also progressing on the Liverpool Street Station roof refurbishment, which was awarded in 2024 by Network Rail, where one of the UK's busiest transport hubs is now benefiting from increased natural light. With the award of the AMP8 Framework with Wessex Water in 2024, the team has commenced works on several Combined Sewer Overflow projects across the framework.