Morgan Sindall shares (LON: MGNS) surged on Wednesday as the firm told investors it was expected to beat profit ranges for this year.
In the latest trading update, the group said that revenue and margin are both “well ahead” of last year.
Morgan Sindall is in the process of repaying the government for the furlough scheme. It has repaid £7.7m of the £9.5m that it borrowed during the scheme.
The group has declared an interim dividend of 21.0p per share, which is in line with 2019’s interim dividend.
John Morgan, Chief Executive, said: “Following the disruption earlier in the year, all of the Group’s activities are now fully operational again and delivering high levels of productivity. We welcome the Prime Minister’s clear statement that construction activity should continue through the new lockdown restrictions in England for November and we anticipate operating safely throughout with minimal impact.
“Our high-quality secured workload gives us good visibility for the rest of the year and as such, we now expect to deliver a full year performance slightly above the top end of our previous expectations.
“Our strong cash generation, position and balance sheet remain key differentiators. These, together with the improved outlook for the year, have enabled us to repay furlough monies and resume dividend payments as declared today.
“Despite the uncertainty that the pandemic brings, we have a sound platform for future growth with the Group geared towards future demand for affordable housing, urban regeneration and infrastructure and construction investment.”
Morgan Sindall’s cash position expects the average daily net cash for the full year to be in excess of £150m, again ahead of previous expectations.