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Price ticking up nicely as all sites get back to full speed ahead. A few weeks of ticking up and we will get to target this year for a nice safe return on the investment.
From Proactive...
Morgan Sindall Group PLC - Morgan Sindall rises as order book remains unchanged despite coronavirus disruption
Morgan Sindall Group PLC (LON:MGNS) shares were on the up on Thursday as the group said its order book had remained unchanged from the year-end position despite disruption caused by the coronavirus pandemic.
In a trading update, the construction group said its secured workload as of 31 March was £7.6bn and that its balance sheet was in “good shape” with net cash of £174mln as of 5 May.
The company also said around 80% of its construction sites were currently operational as well as 75% of infrastructure projects and 70% of fit out projects.
“With this high-quality workload and with the balance sheet in good shape, the group is well-positioned to successfully navigate through these current uncertain times and emerge primed for future success in the medium and longer term”, the company said.
However, Morgan Sindall continued to suspend its forward guidance due to the pandemic uncertainty.
“Our decentralised structure has allowed us to adapt quickly to these evolving circumstances and to rapidly adopt new ways of working, which will stand us in good stead for the future”, said chief executive John Morgan.
“Our strategy remains unchanged, focused on building long-term workstreams in markets that remain attractive. Supported by a strong balance sheet, the actions taken put the Group on the best footing to ensure its continued success", he added.
In a note, analysts at Peel Hunt retained their ‘add’ rating and 1,500p price target on the firm, saying the update provided “encouragement” regarding site reopenings and productivity.
“In addition, net cash of £174mln implies a likely positive average daily net cash position for [the 2020 financial year]”, the broker said, although they added that investors “are likely to look for further evidence of recovery” before rerating the share price.
Excellent results out this morning and actually doing more work than I expected in Lockdown. Will soon be back to normal trading. Also I expect that profits could well be up this year as what happens when less work is generally available for workmen and suppliers is that their prices drop to contractors like MGNS thus improving profits or in MGNS case making up for any shortfall in tutnover. Alsos they have a huge future order book and with lockdown easing this weekend all should be back to normal soon. Not a lot of shares in free float so I would get in quick if your keen as could soon get bavk to normal share price of about 1800
Certainly a recovery stock
John Morgan has always taken advantage of these sort of situations. Certainly bigger than what he has had to deal with before but more than up to the task.Knows how to keep the juices flowing
Cut his teeth selling hairdressing businesses in a poke of an office in Golden Square flogging the odd desk and promoting
a punk rock band whilst practicing as a commercial property agent so no stranger in rolling his sleeves up
Maybe his swansong but cometh the hour cometh the man
"This is such a fantastic opportunity at the moment"
Fully agree especially as sp has dropped even more since your post.
Just used the last of my spare cash to buy a few at 1273.775p.
The dynamic of a construction company is different to that of most others. Where there is delay incurred on projects that is not attributable to MGNS (i.e. Corona), it actually increases entitlement to recover costs.
The government have already announced increased spending in the infrastructure sectors and the recent drop in oil prices means that operating costs of heavy machinery is significantly reduced! This is such a fantastic opportunity at the moment
bought a few after 16% drop.
Government must support infrastructure spending to get economy moving again
"what's not to like?"
The fact that the sp has dropped to 1138p perhaps?
However, I agree, IMO this company represents a good investment, especially at these prices.
Feels like a solid home for one's cash. Well covered generous div. supported by a mix of well established drivers with a solid track record- what's not to like?
https://masterinvestor.co.uk/equities/morgan-sindall-has-it-all/
which way this could go early next week top slicing
Then this is off to the races again.
Time to be adding more
Going along nicely
but overall this is looking good
mofos
today, watch the bull run imo :)
This is a great play into infrastructure spending which is a sweet spot at present. Earnings are improving with potential to improve margins now unprofitable contracts have been sorted and their market rating is still below their peers.
Maybe run its course here tbh....difficult first half of year but good rise since.
lol.to right..... erotically interesting....... best not get carried away with the descriptive lingo just in case mary whitehouse is about..........
Interesting!!!
"IMHO, based on previous performance, the SP will slowly lift to 550p then hover for a couple weeks and slowly climb to 600p. From there, it could be quite a quick move up to 650p-700p, making this a great growth and income investment." Well done Aittch you called that right, with the sp around 678p today. However, with the 50%cut in the final divi a few months back, the fall in the profit before tax for the half year from £18.8m (2012 H1), to £1m (2013 H1), and now the CEO selling 500k of his 4.5m shares, this is enough for me. I have reduced my holding by nearly 90%.
Morgan Sindall: JP Morgan downgrades from overweight to neutral.
You were the person to post over on ILX prior to me, are you still over there or do you hold?