Morgan Sindall Group Regulatory News (MGNS)

13 Mar 2009 14:04



Morgan Sindall plc

13 March 2009

Morgan Sindall AWARDED £500 million 

SEVERN TRENT AMP FRAMEWORK 

Morgan Sindall's infrastructure services business Morgan Est, today announces that it has been awarded a ten year framework contract by Severn Trent, covering the next two Asset Management Periods, AMP5 and AMP6. The contract has an estimated value of £500 million and represents a significant increase on the corresponding contract awarded to Morgan Sindall by Severn Trent for the current Asset Management Period, AMP4, which was worth approximately £80 million. 

The contract is one of 11 awarded by Severn Trent and is for a co-located, integrated design and build model. AMP5 commences on 1 April 2010 and runs for a five year period. Morgan Est's civil engineering and utility services operations will carry out improvement work to clean water and waste water pipelines within the southern area of Severn Trent's region. Design work will start one year early in line with Severn Trent's strategy.

Paul Smith, Chief Executive of Morgan Sindall plc, said:

"This is a very important win for our Infrastructure Services division, building on the strong relationship we have developed with Severn Trent through the last two Asset Management Periods. We have a leading position in the water sector and this latest framework win is further evidence of this.

"We expect conditions in the infrastructure services market to remain buoyant throughout 2009 and beyond, and are ideally placed to take advantage of investment in key sectors such as transport, water and energy."  

ENDS

Notes to Editors:

Morgan Sindall plc, the construction and regeneration group, operates through five specialist divisions of fit out, construction, infrastructure services, affordable housing and urban regeneration.

Morgan Est is a leading provider of infrastructure services across the public and private sector. The business specialises in the design and delivery of complex engineering projects, provides specialist tunnelling, civil engineering and mechanical and electrical services to the defence, water, utilities, transport and rail sectors.