In a trading statement for the first six months of the year, the construction and regeneration contractor said the fit-out division in particular had delivered a much stronger performance than expected.

The surge in work is being driven by a client shift to upgrade and refit offices in the Capital to create best-in-class office environments for staff.

Chief executive John Morgan said that the fit-out division led by its business Overbury would deliver a profit in the first half around 40% above the level reported for the same period last year.

Despite a more challenging market he said the full-year profit now looked set to be ahead of its previous expectations.

This would be driven by continued strong momentum in fit-out and its forward order book for the second half, together with the anticipated net prospects for the rest of the group.

Morgan Sindall will announce its half-year results in early August 2023.