3rd Nov 2021 10:27
(Alliance News) - Morgan Sindall Group PLC on Wednesday said it now expects to deliver its full year performance slightly above its previous expectations.
The London-based construction company said trading has continued to be strong since August, while inflation in the supply chain and the availability of materials and labour have remained manageable.
Morgan Sindall said its construction activities are expected to deliver a full year operating margin of 3%, while the operating margin in the infrastructure activities is expected to be well in excess of 3.5%. Both activities are benefiting from the continued focus on long-term client relationships, operational delivery and risk management.
In 2020, it recorded revenue of GBP3.03 billion with pretax profit of GBP60.8 million.
Elsewhere, Fit Out has had a record period of winning work and converting projects, the company said, while Partnership Housing has continued to see high levels of unit sales and completions as well as construction activity.
Urban Regeneration's active development schemes have progressed as planned, however, viability challenges exist on some projects not yet commenced, Morgan Sindall noted.
Property Services is still seeing slightly lower planned maintenance activity than expected.
Going forward, the company said the total secured workload as at September 30 stood at GBP8.9 billion, up 7% from the year end and up 11% versus the prior year.
"Trading remains strong across the group and our high-quality and growing workload leaves us well set for the future," said Chief Executive John Morgan.
"Inflation in the supply chain remains manageable and based upon our current performance and the visibility we have for the rest of the year, we expect to deliver a full year performance which is slightly above our previous expectations," added Morgan.
FTSE 250-listed Morgan Sindall shares were trading 0.9% higher in London on Wednesday morning at 2,250.00 pence each.
By Evelina Grecenko; [email protected]
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