Office fit-out has continued to deliver for Morgan Sindall (MGNS). The division has continued its winning run by making a strong start to the year, so strong in fact the specialist construction group has raised expectations for the full year. Management had previously forecast a dip in profits from the division this year.
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The performance has been confounding due to the strong showing from the London office sector, which many assumed would be damaged by the result of the EU referendum. Nervousness persists, with analysts predicting a drop in profit from the division, or at least a rapid deterioration in growth. But analysts at Peel Hunt raised 2018 EPS estimates by 6 per cent and now expect 134p with pre-tax profit of £77.5m.