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Mon November 18 2019

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Morgan Sindall maintains momentum

6 Nov An upbeat trading statement from Morgan Sindall Group reveals that its 2019 profits will be higher than it previously expected, thanks in part to improved construction margins.

Morgan Sindall said that because trading had continued to be strong, it was now on track to deliver a full year performance slightly above the board’s previous expectations (set out in August).

Average daily net cash for the full year is expected to top £100m, which is also ahead of previous guidance.

By a tighter focus on operational delivery, contract selectivity and risk management, Morgan Sindall’s Construction & Infrastructure operations are expected to show further margin improvement over last year, the company said.

The total secured workload for as at 30th September 2019 was £7.3bn, up 10% from the start of the year but down 2% since 30th June. This comprised a secured order book of £4.1bn, up 15% from the year end (down 3% from the half year) and a regeneration & development pipeline of £3.2bn, which was up 4% from the year end (down 2% from the half year).

Chief executive John Morgan said: “We continue to make good progress, with positive momentum across the group’s operations. Consequently, we now expect to deliver a full year performance slightly above the board’s previous expectations. Our strong balance sheet continues to be a significant differentiator and enables us to make the right long-term decisions for the business which position us well for continued sustainable growth.”

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