8th May 2014 09:14
LONDON (Alliance News) - Construction company Morgan Sindall Group PLC said Thursday it traded in line with expectations in the first quarter, while its committed order book rose 9% from the year-end.
In an interim management statement for the period January 1 to date, the firm, which builds houses and refurbishes offices, said its construction arm performed well with a committed order book up 4% from the year-end. The fit-out division, which refurbishes offices, delivered an improved performance with its committed order book at the period-end up 35% from the year-end.
However, it said the affordable housing division was struggling with margins contracting, "depressed" by the impact of localised labour and material cost inflation. In response the company said it is focusing on business development, which has led to some success in winning profitable new work in the period, and on improving operational inefficiencies.
Morgan Sindall said its regeneration business has seen growth in 2014. As expected, the increased amount of activity on development schemes within urban regeneration, which was reported at the year-end, has led to completion on a number of phases and an improved performance when compared with 2013, the company said.
Financially, at the period-end net debt stood at GBP6.2 million.
The stock was trading at 785.00 pence, up 5.00 pence or 0.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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