7th Nov 2013 11:32
LONDON (Alliance News) - Construction company Morgan Sindall Group PLC Thursday said its forward order book at the end of the third quarter was up 6% to GBP3.3 billion compared with last year, as it performed in line with expectations.
In an interim management station for the period July 1 to November 7, Morgan Sindall said group revenue "held up well" when compared with the same period last year, while group margin was hurt by margin contraction in the construction and infrastructure divisions.
The company did not provide any revenue figures.
Morgan Sindall, which undertakes affordable housing projects and urban regeneration, said there had been "no significant change" in market conditions or performance during the period for the construction and infrastructure division. It said the focus for the division remained on operational delivery, and on contract and working capital management.
However it warned that as markets recover,"upward pressure on material costs and subcontractor costs will provide additional management challenges".
The company's affordable housing division saw an improvement in the third quarter boosted by "positive trends" in the housing market. Morgan Sindall said there was an increase in open market house sale completions of 41% in the nine months of 2013, compared to the same period in 2012.
"However, there remains significant competitive pressure on construction revenue and margins, exacerbated by increasing material costs and subcontractor costs," it said.
The firm said it was confident that its urban regeneration division was progressing well after it won a GBP100 million development project in South Shields, downstream from Newcastle.
Overall net debt at the end of October stood at GBP15 million, Morgan Sindall said.
The stock was trading at 843.00 pence, up 45.00 pence or 5.6%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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