Indicating that it is having ‘a good recession’, Morgan Sindall Group told the stock market this morning: “We remain confident that we are positioning the business to take advantage of market opportunities and to emerge from the market downturn in a stronger place.”
The board said: “The pipeline has grown significantly over the course of the year from £1.4bn to £2.2bn with a further £1.0bn at preferred developer stage. Our forward contracted order book is slightly below that reported at half year at £3.3bn but there are a number of major opportunities currently at preferred bidder stage valued at £0.3bn.
The company sees its urban regeneration division, Muse, as particularly key to its fortunes, as cash-strapped local authorities will have to turn to new privately funded investment models such as the local asset backed vehicle (LABV) model that Bournemouth council and Muse are employing to develop several sites.
Morgan Sindall said: “Although we are cautious about 2012 we believe our medium term prospects have improved over the course of 2011 with our greater emphasis on regeneration being reflected in a growing regeneration pipeline.”