Shares of Morgan Sindall Group PLC (LON: MGNS) surged 12% despite the tumbling revenue and profits. The construction firm reinstated its full-year guidance amid improved visibility. 

Morgan Sindall reported its pre-tax profit tumbled 62% to £13.6 million amid the pandemic and lockdown measures. Earnings per share slumped to 27.4p while revenue went 4% south to £1.4 billion for the first six months ending June. It marks the worst set of figures from the construction giant in the last five years. 

As a result, the firm reinstated its full-year guidance as it expects a full-year profit between £50 million and £60 million. This is a drop of between 30% and 40% compared to last year’s £88.6 million. Hence, Morgan Sindall won’t be paying an interim dividend. 

The company witnessed a strong first quarter ending March, with revenue up 17%. However, the lockdown measures prompted the closure of 31% of its building sites and caused the Q2 income to fall 23%.

Still, Morgan Sindall remains committed to its long-term strategy. 

Out of 1,900 furloughed staff, some 1,700 have returned to work in the meantime. The net cash reserves also improved, jumping to £146 million.  

Morgan Sindall stock price rallied 12% on, what it appears, better-than-expected results. Moreover, the company has reinstated the full-year guidance to inject a certain degree of optimism in the future outlook. 

Shares are trading above 1150p just two days after dipping below 1000p for the first time since 2017. The bulls are now pushing to test the broken diagonal support above 1200p. The 200-WMA, which now acts as resistance, comes at 1248p. 

Morgan Sindall stock price is trading as much as 12% higher despite a 62% tumble in the first half-year profits. The construction firm reinstated its full-year guidance amid improved visibility, sending its shares higher. 

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