22nd Apr 2008 07:00
Morgan Sindall PLC22 April 2008 Morgan Sindall plc 22 April 2008 AGM and Interim Management Statement Ahead of today's Annual General Meeting, to be held at ABN AMRO, 250Bishopsgate, London EC2M 4AA at 12pm, Morgan Sindall plc ("the Group") announcesits first Interim Management Statement as required by the UK Listing Authority'sDisclosure and Transparency Rules. At the AGM, John Morgan, Executive Chairman of Morgan Sindall plc, will give thefollowing trading update for the period from 1 January 2008 to date. "Morgan Sindall has made a positive start to the year and is trading in linewith our expectations. "Fit Out's revenue is in line with the same stage last year. The wider fit outmarket has held up over the first quarter although the credit crisis has led tosubdued fit out activity in the financial services sector. The division benefitsfrom an increasingly wide sector spread and the short term order book remainshealthy. As we have commented before, the longer term outlook for the fit outmarket remains uncertain. "Construction has made a satisfactory start to 2008, continuing with its focuson its key sectors of health, education, light industrial, retail and defence.Although the commercial sector is quieter, the division continues to seeopportunities in the public sector. The order book has strengthened since thestart of the year and the outlook for the general construction market remainspositive. "Infrastructure Services has also started the year well securing major new roadprojects at the M74 in Glasgow and the A1073 in Lincolnshire, in particular.There is currently a strong pipeline of opportunities driven by investment intransport, power and rail infrastructure. "Affordable Housing has seen growth in revenues in its refurbishment and socialnew build activities. Inevitably the division's open market activities have beenimpacted by the availability of mortgages to first time buyers and marketconditions are significantly tougher than a year ago. However, it is importantto note that sales of open market homes accounted for less than five per cent ofthe Group's revenue in 2007. We expect mixed tenure regeneration to drive futuregrowth in the sector and the division has been successful in securing a numberof these schemes in the first quarter of the year, including Ellesmere Road,Shrewsbury and Orleton Park, Wellington. "Economic conditions are currently creating a degree of uncertainty for UrbanRegeneration, but we do not anticipate a significant impact on the division's performance due to its resilient business model. With its focus on long term strategic partnership arrangements the division is well placed with a secure forward development pipeline and limited exposure to the revaluation issuescurrently affecting the property sector. We remain of the view that the regeneration market is set for significant growth in the long term. "The Group's order book has been maintained at £4.3bn, the same level as at thestart of the year and average cash balances to date are above those achievedlast year. The financial position of the Group remains strong, there having beenno significant changes to this position since the publication of the AnnualReport and Accounts for the year ended 31 December 2007. In summary, we remainon track for 2008 although any prolonged slow down in certain sectors may impact2009 and beyond." Morgan Sindall plc Tel: 020 7307 9200 Paul Smith, Chief ExecutiveDavid Mulligan, Finance Director Blythe Weigh Communications Tel: 020 7138 3204 Tim BlythePaul Weigh This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Morgan Sindall Group