Morgan Sindall Group Plc · LSE:MGNS

Morgan Sindall — H1 2025 Earnings Presentation

43 slides from Morgan Sindall's earnings presentation, Jul 29, 2025

  1. Slide 1: Half Year 2025 Results Presentation

    Half Year 2025 Results Presentation to 30th June 2025 29th July 2025

  2. 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

  3. Slide 3: Group Highlights

    Name London Gateway, Group GroupHighlights MUSE Project Highlights Muse, Lewisham John JohnMorgan Morgan

  4. 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

  5. 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

  6. Slide 6: Financial and Operational Review

    Name Institute, London Project Crick Financial Financialand andOperational OperationalReview Francis Review Kelly KellyGangotra MUSE Gangotra Fit Out, The

  7. 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

  8. 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

  9. 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

  10. 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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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

  22. 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

  23. 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

  24. Slide 24: Partnerships

    Tottenham Name Financial and Operational Review Project Wharf, Partnerships Divisional Kelly Performance Gangotra MUSE Muse, Hale Steve Coleby & Phil Mayall

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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)

  30. 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

  31. 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

  32. 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

  33. Slide 33: Summary

    Summary John Morgan Construction, King Hemry VIII School, Abergavenny

  34. 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

  35. Slide 35: Questions

    Questions Half Year Results 2025 Page 35

  36. Slide 36: Appendices

    Appendices Half Year Results 2025 Page 36

  37. 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

  38. 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

  39. 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.

  40. 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

  41. 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

  42. 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

  43. 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

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