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Wed June 03 2020

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Materials shortages continue to hamper Morgan Sindall

7 May A trading update from Morgan Sindall today reveals continuing disruption to operations impacted by the coronavirus lockdown.

While 80% of its construction sites are now operational, they are being impacted by lower levels of productivity, partly due to difficulties getting certain building materials on site.

Across the group, 1,700 employees – 25% of the total – are on furlough.

Morgan Sindall's infrastructure division has been able to maintain a reasonable level of activity following an initial period of reassessment of safety procedures that closed a number of its sites. With many of its projects being for larger public sector clients, three-quarters of sites are now operational “and progress towards a reopening of all sites in the short term is expected,” the company said.

The exception is the aviation business, based at Heathrow, where activity has been substantially curtailed.   

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Morgan Sindall’s fit-out business, Overbury, has about 70% of sites operational, but at varying levels of productivity, again due to materials shortages, as well as the new site operating procedures.

In property services, local authority contract work has been limited to 'emergency' repairs only along with much reduced voids and planned activity. Revenue from this business is therefore down by 80%, the company said.

Following the initial closure of most of Lovell’s partnership housing construction sites, many are now re-opening as builders’ merchants step up deliveries.

Chief executive John Morgan said: "These are clearly challenging times and we continue to take the appropriate action to mitigate the impact of Covid-19.  The group remains well funded, with good cash liquidity and an orderbook of £7.6bn, underpinning our confidence in the group's long-term prospects."                            

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