Morgan Sindall 'on track' for full year performance that exceeds expectations

Thu, 22nd Apr 2021

Construction and regeneration group, Morgan Sindall, is 'on track' to deliver a full year performance which is 'significantly ahead' of its previous expectations. According to the latest trading update covering the first three months of 2021, the company said all divisions have made 'positive operational and strategic progress' in their markets and momentum across the group has continued to increase. In Construction & Infrastructure, the latter has continued to trade strongly, with operational delivery and work mix driving further margin growth. Construction has had a strong start to the year with its secured order book at the end of March up 10% from the year end position and its ongoing focus on contract selectivity and risk management provides the basis for continued further improvement through the year. Fit Out has had a very strong trading period and its secured order book at the end of March was 18% higher than at the year end. In addition, it has in excess of £400m of work currently at preferred bidder stage. Taken together, Fit Out is expected to deliver a result for the year which is materially ahead of its medium-term target, the company said. Volume in Property Services has held up well despite lower than expected planned maintenance activity, with its margin expected to improve as the year progresses. Partnership Housing has continued to see high levels of market demand, which together with ongoing improvements in operational delivery, is driving good margin and profit growth. The average daily net cash from 1 January to 20 April was £288m (of which £68m was held in jointly controlled operations or held for future payment to designated suppliers). This represented an increase of £154m over the average for same period last year. Based upon this and current forecasts to the year end, Morgan Sindall said the average daily net cash for the full year is now expected to be in excess of £180m (FY 2020: £181m), 'significantly ahead' of previous guidance. John Morgan, CEO at Morgan Sindall, 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.' At 9:03am: (LON:MGNS) Morgan Sindall Group PLC share price was 0p at 1382p Story provided by StockMarketWire.com

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