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30 Apr 2009 07:00
Morgan Sindall plc
30 April 2009
AGM aND INTERIM MANAGEMENT STATEMENT
Ahead of today's Annual General Meeting, to be held at RBS, 250 Bishopsgate, London EC2M 4AA at 12pm, Morgan Sindall plc ("the Group") announces its Interim Management Statement.
At the AGM, John Morgan, Executive Chairman of Morgan Sindall plc, will give the following trading update for the period from 1 January 2009 to date.
"Morgan Sindall has made a positive start to the year and is trading in line with our expectations.
"Following a record six months' performance in the second half of 2008, Fit Out's revenue has, as expected, fallen over the first quarter of 2009 in comparison to the same period in 2008 by around a quarter. The division's sector spread is helping to provide some resilience as it continues to secure contracts across a broad range of market sectors. The forward order book is robust, extending into 2010, with an improvement in its overall level since the start of the year.
"Construction has made a solid start to the year with market conditions remaining satisfactory. The division continues to be well positioned with around three quarters of its workload coming from the public sector, where demand remains healthy. The current forward order book is down slightly since the start of the year but still gives us good visibility of workload over the next twelve months.
"The momentum in Infrastructure Services' markets continues and the division has secured contracts in our target markets of water and transport during the first quarter of the year including the £500m AMP5 framework with Severn Trent and the £100m upgrade to the A1 between Dishforth and Barton. The outlook for the division remains positive as it continues to pursue a number of major infrastructure opportunities and the forward order book has increased since the start of the year.
"Refurbishment and new build social housing volumes remain healthy in Affordable Housing and the division has continued to secure key contracts and renewal of existing frameworks during the first quarter in these areas, including the next phase of the Sheffield Decent Homes programme and a new build social housing contract for Merthyr Tydfil Housing Association, though conditions for open market housing remain challenging. Its current forward order book remains consistent with the start of the year.
"Urban Regeneration has traded in line with expectations since the start of the year although as previously announced market conditions remain subdued. Since the start of the year the division has been successful in securing the £220m, 10-year project to regenerate Blackpool in partnership with Blackpool Council and the £300m project to create a civic and cultural quarter in Doncaster in partnership with Doncaster Council.
"The Group's forward order book currently stands at £3.8bn, a slight increase since the start of the year. In addition to the order book, Urban Regeneration's development pipeline has increased in value to £1.6bn. The financial position of the Group remains strong, there having been no significant changes to this position since the publication of the Annual Report and Accounts for the year ended 31 December 2008. In summary, we have made a positive start to 2009 and with our broad sector spread we remain well positioned to face the challenges ahead and to benefit from opportunities as they present themselves."
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ENQUIRIES:
Morgan Sindall plc Tel: 020 7307 9200
Paul Smith, Chief Executive
David Mulligan, Finance Director
Blythe Weigh Communications Tel: 020 7138 3204
Paul Weigh Mobile: 07989 129658
Tim Blythe Mobile: 07816 924626
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