Morgan Sindall says that it is trading significantly ahead of expectations and that the average daily net cash for the full year is likely to top £180m.
“On the basis of the performance to date, the group's operational delivery capabilities and the current visibility of future workload for delivery in the remainder of the year, the group is now on track to deliver a full year performance which is significantly ahead of its previous expectations,” the company said in a trading update.
The Construction division's order book has grown 10% in the first quarter of 2021, while the Fit Out order book has grown 18%.
Volume in Property Services had ‘held up well’, the company said, ‘despite lower than expected planned maintenance activity, with its margin expected to improve as the year progresses’.
The total secured workload at 31st March 2021 was £8.1bn, up 8% from a year before. This comprised the construction secured order book of £4.0bn, up 15% over the year and the regeneration secured order book of £4.1bn, which was up 1%.
Last month Morgan Sindall was selected by West Sussex County Council as its partner for a 30-year property joint venture to develop surplus council land, with an initial immediate pipeline of 10 sites already identified.
Chief executive John Morgan said: "Since the start of the year, the positive momentum across the group has continued to accelerate and with the group geared towards demand for affordable housing, urban regeneration and infrastructure and construction investment, I am excited by the significant opportunities ahead.
“Our high-quality secured workload and our operational delivery capabilities give us great confidence for the rest of the year and as such, we expect to deliver a full year performance significantly ahead of our previous expectations."
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