Morgan Sindall
Website:
Morgan Sindall
Index:
FTSE 250
EPIC: MGNS
Supersector:
Construction and Materials
Sector:
Construction and Materials
Subsector:
Heavy Construction
Market Cap:
£2.15B
Payout Frequency: Semi-Annual
Morgan Sindall Dividend Analysis and Summary
Dividend summary (Morgan Sindall Group PLC)
- Declared dividend: Final dividend of 108.0p per share (subject to AGM approval)
- Total dividend for FY2025: 158.0p per share (+20% YoY; FY2024: 131.5p)
- Interim dividend: 50.0p; Final dividend: 108.0p
- Ex-dividend date: 14/05/2026
- Record date: 15/05/2026
- Payment date: 04/06/2026
- Dividend cover (FY2025): 2.4x (adjusted EPS 370.0p vs DPS 158.0p)
- Stated dividend policy: maintain annual cover of 2.0x–2.5x
- Yield: not stated in the RNS (depends on prevailing share price)
Focused analysis: sustainability and growth
- Sustainability: The 20% DPS increase is backed by strong FY2025 results (adjusted PBT +35%, adjusted EPS +33%) and a robust net cash position of £531m with average daily net cash of £368m; management guides to >£400m average daily net cash in 2026. Cover at 2.4x sits within policy, indicating prudent headroom.
- Earnings outlook: 2026 guidance is “in line with revised expectations.” Fit Out is expected to be lower than 2025 but still well above its medium-term profit range; Construction and Infrastructure margins are guided to be mid-range. Mixed Use Partnerships expects modest 2026 profits and Partnership Housing continues to invest, suggesting dividend growth may normalise after the 2025 step-up but should remain well supported.
- Cash and capital allocation: The Board reiterates a strong balance sheet and net cash ‘buffer’ as core to strategy. Ordinary dividends are prioritised within a 2.0x–2.5x cover, with special returns considered only if surplus cash remains after investment needs. Ongoing investment in Partnerships (capital employed rising) may temper scope for outsized special distributions near term, but supports durable cash generation over time.
Structural and policy developments relevant to dividends
- Capital Allocation Framework reaffirmed: strong balance sheet first; maximise investment in Partnerships; ordinary dividends with 2.0x–2.5x cover; M&A optionality (primarily in Partnership Housing); potential special returns (buybacks or specials) if surplus capital emerges.
- Divisional changes: Property Services integrated into Construction from 1 Jan 2026 (reporting simplification; no direct impact to dividend policy).
- Governance/management: Responsible Business Committee dissolved; oversight reallocated. CFO role broadened to Chief Financial and Commercial Officer from 1 Apr 2026, potentially strengthening commercial and capital allocation discipline.
- Medium-term targets raised for Infrastructure and Mixed Use Partnerships, supporting confidence in longer-term earnings and dividend capacity.
Risks and flags for dividend stability
- Building safety cash outflows: Provisions remain significant; repayments to the Building Safety Fund expected to begin mid-2026, creating potential cash outflow timing risk.
- Housing market exposure: Ongoing affordability and planning constraints could slow open market sales in Partnership Housing and weigh on returns while capital employed is rising.
- Fit Out normalisation: 2025 was exceptionally strong; profits are guided lower in 2026 (albeit still high), introducing some earnings mean reversion risk.
- Working capital and partner risk: Negative working capital model in Construction/Fit Out and reliance on supply chain partners elevate downside risk in a downturn—partly mitigated by the Group’s large net cash ‘buffer’ and contract selectivity.
- General macro, delivery, and regulatory risks (economic uncertainty, project delivery, cyber, climate) remain, but are longstanding and actively managed.
Read more
Morgan Sindall Annual Dividend Yield - 3.11%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/04/2025 |
15/05/2025 |
Final |
90.00p |
GBX |
| 02/10/2025 |
23/10/2025 |
Interim |
50.00p |
GBX |
Total (Annual Dividends Per Share):
140.00p
Dividend Yield =
Annual Dividends Per Share (140.00p)
÷ Share Price (4496p)
= 3.11%
Morgan Sindall Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 14/05/2026 |
04/06/2026 |
Final |
108.0000p |
GBX |
| 02/10/2025 |
23/10/2025 |
Interim |
50.00p |
GBX |
| 24/04/2025 |
15/05/2025 |
Final |
90.00p |
GBX |
| 03/10/2024 |
24/10/2024 |
Interim |
41.50p |
GBX |
| 25/04/2024 |
16/05/2024 |
Final |
78.00p |
GBX |
| 05/10/2023 |
26/10/2023 |
Interim |
36.00p |
GBX |
| 27/04/2023 |
18/05/2023 |
Final |
68.00p |
GBX |
| 06/10/2022 |
26/10/2022 |
Interim |
33.00p |
GBX |
| 28/04/2022 |
18/05/2022 |
Final |
62.00p |
GBX |
| 07/10/2021 |
26/10/2021 |
Interim |
30.00p |
GBX |
| 29/04/2021 |
19/05/2021 |
Final |
40.00p |
GBX |
| 12/11/2020 |
08/12/2020 |
Interim |
21.00p |
GBX |
| 23/04/2020 |
19/05/2020 |
Final |
38.00p |
GBX |
| 10/10/2019 |
28/10/2019 |
Interim |
21.00p |
GBX |
| 25/04/2019 |
20/05/2019 |
Final |
34.00p |
GBX |
| 11/10/2018 |
29/10/2018 |
Interim |
19.00p |
GBX |
| 26/04/2018 |
21/05/2018 |
Final |
29.00p |
GBX |
| 12/10/2017 |
30/10/2017 |
Interim |
16.00p |
GBX |
| 27/04/2017 |
22/05/2017 |
Final |
22.00p |
GBX |
| 13/10/2016 |
24/10/2016 |
Interim |
13.00p |
GBX |
| 28/04/2016 |
23/05/2016 |
Final |
17.00p |
GBX |
| 01/10/2015 |
23/10/2015 |
Interim |
12.00p |
GBX |
| 30/04/2015 |
29/05/2015 |
Final |
15.00p |
GBX |
| 01/10/2014 |
23/10/2014 |
Interim |
12.00p |
GBX |
| 30/04/2014 |
23/05/2014 |
Final |
15.00p |
GBX |
| 25/09/2013 |
24/10/2013 |
Interim |
12.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
41.500 |
78.000 |
GBX |
119.500 |
14.900 |
| 2023 |
36.000 |
68.000 |
GBX |
104.000 |
9.470 |
| 2022 |
33.000 |
62.000 |
GBX |
95.000 |
35.710 |
| 2021 |
30.000 |
40.000 |
GBX |
70.000 |
18.640 |
| 2020 |
21.000 |
38.000 |
GBX |
59.000 |
7.270 |
| 2019 |
21.000 |
34.000 |
GBX |
55.000 |
14.580 |
| 2018 |
19.000 |
29.000 |
GBX |
48.000 |
26.310 |
| 2017 |
16.000 |
22.000 |
GBX |
38.000 |
26.660 |
| 2016 |
13.000 |
17.000 |
GBX |
30.000 |
11.110 |
| 2015 |
12.000 |
15.000 |
GBX |
27.000 |
0.000 |
| 2014 |
12.000 |
15.000 |
GBX |
27.000 |
125.000 |
| 2013 |
12.000 |
|
GBX |
12.000 |
|
Morgan Sindall Dividend Calculator
Morgan Sindall Dividend Growth
| Dividend Growth (1Y) |
20.15%
|
| Dividend CAGR (5Y) |
20.97%
|
| Years of Growth |
5
|
| Payout Ratio |
37.62%
|
| Buyback Yield |
-1.65%
|
| Shareholder Yield |
1.87%
|
| P/E Ratio (TTM) | 12.67 |
|---|
| Forward P/E | 12.47 |
|---|
| P/FCF | 12.25 |
|---|
| Earnings Yield | 8.34% |
|---|
| FCF Yield | 8.17% |
|---|
| ROE | 25.06% |
|---|
| ROCE | 26.96% |
|---|
| Profit Margin | 3.49% |
|---|
| Operating Margin | 4.46% |
|---|
| Gross Margin | 12.22% |
|---|