4th May 2023 10:27
(Alliance News) - Morgan Sindall Group PLC on Thursday said trading since the start of the year has been in line with expectations, as inflation begins to abate.
The London-based construction company said trading since the start of the year has been as expected and tough market conditions "have continued to ease", with inflation moderating "in certain areas."
It noted that its Construction & Infrastructure division remains focused on contract selectivity, risk management and operational delivery. Morgan Sindall said the division is anticipated to deliver revenue growth at margins which are in line with its medium-term targets.
Fit Out's trading has been very strong and its order book and enquiry levels provide confidence for the rest of the year, it added.
However, in Property Services, its margin has been impacted by "disappointing contract delivery" despite the expected higher level of revenue.
Looking ahead, Morgan Sindall said it is confident of delivering a full year performance which is in line with its expectations and with more of a weighting towards the first half than in recent years.
The total secured workload for the company at March 31 was GBP8.8 billion, up 4% from the year-end and up 2% versus the prior year.
Chief Executive Officer John Morgan said: "Since the start of the year, trading has been as expected and the general market conditions coming into 2023 have continued to ease with inflation falling in certain areas.
"Based on the current visibility of workload for delivery through the remainder of the year, we're confident of delivering a full year performance which is in line with our expectations."
Shares in Morgan Sindall were up 1.9% to 1,726.39 pence each in London on Thursday morning.
By Sophie Rose, Alliance News reporter
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