Last checked at 6 Nov 2019 07:00
6 November 2019
Morgan Sindall Group plc
Trading Update
Morgan Sindall Group plc ("the Group") today provides an update on current trading and the outlook for the 2019 financial year.
Group performance and outlook
Trading has continued to be strong and the Group is now on track to deliver a full year performance which is slightly above the Board's previous expectations which were set at the time of the half year results on 7 August 2019.
Additionally, the average daily net cash for the full year is expected to be in excess of £100m, ahead of previous guidance.
Divisional highlights
The focus in Construction & Infrastructure remains on operational delivery, contract selectivity and risk management and its full year performance is expected to show further margin improvement over last year.
Market conditions for Fit Out have remained broadly stable over recent months and based on its visible workload, a strong performance in the second half of the year is expected.
The improved performance by Property Servicesdelivered in the first half of the year has continued and it is expected that its operating margin for the year will be well in excess of 3%.
Partnership Housing is progressing well, with the benefit of the ongoing operational improvements driving the expected growth in margin and profit for the full year.
In Urban Regeneration, progress on the various schemes within its development portfolio has been as expected, while Investments is on track to deliver a result for the year broadly similar to last year's.
Group secured workload
The total secured workload for the Group as at 30 September 2019 was £7.3bn, up 10% from the year end position (down 2% from the half year). This comprised the secured order book of £4.1bn, up 15% from the year end (down 3% from the half year) and the regeneration & development pipeline of £3.2bn, which was up 4% from the year end (down 2% from the half year).
Balance sheet
The Group's cash position remains strong and the average daily net cash from the start of the year to 31 October was £109m. Based upon this and current forecasts to the year end, the average daily net cash for the year is expected to be in excess of £100m (FY 2018: £99m).
John Morgan, Chief Executive, said:
"We continue to make good progress, with positive momentum across the Group's operations. Consequently, we now expect to deliver a full year performance slightly above the Board's previous expectations. Our strong balance sheet continues to be a significant differentiator and enables us to make the right long-term decisions for the business which position us well for continued sustainable growth."
This announcement contains inside information. The person responsible for the release of this announcement on behalf of Morgan Sindall Group plc is Steve Crummett, Group Finance Director.
ENDS
Morgan Sindall Group
Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of c£3bn, employing around 6,600 employees and operating in the public, regulated and private sectors. It operates through six divisions of Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration and Investments.
ENQUIRIES:
Morgan Sindall Group plc Tel: 020 7307 9200
John Morgan, Chief Executive
Steve Crummett, Finance Director
Instinctif Partners Tel: 020 7457 2020
Matthew Smallwood
James Gray
Rosie Driscoll