Morgan Sindall Group Regulatory News (MGNS)

05 November 2014

Morgan Sindall Group plc

Morgan Sindall Group plc secures position on £300m redevelopment framework for BAE Systems and £250m project alliance for Network Rail

Morgan Sindall Group plc, the construction and regeneration group, today announces that its Construction and Infrastructure division, Morgan Sindall plc, has secured positions on two significant frameworks with BAE Systems and Network Rail.

Morgan Sindall plc will tender alongside two other contractors to deliver a major £300 million eight-year redevelopment programme for BAE Systems, which will transform its submarine building capabilities. The programme will include a mix of new build projects and the refurbishment of existing facilities in what is the most significant redevelopment of the Barrow-in-Furness site since the 1980s.

In addition, Morgan Sindall plc has secured a £113m position on the £250m Edinburgh-Glasgow Improvement Project (EGIP) alliance for Network Rail. This two-year project will deliver a critical rail infrastructure upgrade between Scotland's two principal cities, Edinburgh and Glasgow, and forms part of the £742 million Scottish Government-funded investment to transform transport in the country. The alliance agreement between Network Rail and Morgan Sindall plc allows all parties to share in end-of-contract losses or profits. This model of risk-share is designed to create a collaborative environment between all members of the alliance.

Transport Minister, Keith Brown said:

"This £250million contract marks a significant milestone in the EGIP project, which will provide 20% quicker journey times, 30% more capacity and a complete overhaul of stations in both cities, with the new-look Haymarket station already completed on time and under budget and the planned transformation of Queen Street station into a 21st century transport hub.

"The Scottish Government's record levels of investment in our railways is achieving even more than improved train journeys. It's providing jobs and training opportunities such as those in the Babcock Training Facility in Hamilton where we are making this announcement.

 "That is, in turn, contributing to Scotland's growth and the sustainability of our engineering sector, as well as a bright future for the young people here setting out on a career path in the rail industry.

"This announcement signifies a massive step forward for EGIP, for Scotland's railways and for many benefits far beyond."

John Morgan, Chief Executive, Morgan Sindall Group plc said:

"We are delighted to have been appointed to these two critical projects which will enable BAE Systems and Network Rail to deliver on their strategic and operations ambitions. The redevelopment of BAE Systems' submarine building capabilities at Barrow-in-Furness is a highly complex project which will draw on Morgan Sindall's expertise and innovative approach to construction design and build.

We are also thrilled to be involved in Network Rail's landmark project which will transform transport networks in Scotland. Our appointment to the alliance is a key development for Morgan Sindall and continues our successful working relationship with Network Rail.

Despite the challenging backdrop in the Construction sector, our expertise in delivering complex, high-quality infrastructure projects for our customers ensures we are well positioned to take advantage of the healthy pipeline we see ahead."

Editor's notes:

About Morgan Sindall Group

Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of over £2 billion and which operates through five divisions of construction and infrastructure, fit out, affordable housing, urban regeneration and investments.

Contact:

Morgan Sindall Group 020 7307 9200

John Morgan, Chief Executive

Steve Crummett, Finance Director

Brunswick 0207 404 5959

Nina Coad

Alison Kay