Last checked at 2 Nov 2015 07:00
2 November 2015
Morgan Sindall Group plc
Trading Update
Morgan Sindall Group plc ('the Group') today announces a trading update for the period from 1 July 2015 to date.
Overall Group performance has been in line with the Board's expectations set at the time of the half year results on 4 August 2015 and expectations for the year to 31 December 2015 remain unchanged.
Positive momentum has continued across the Group with a focus on the overall quality of the order book and more favourable procurement routes. The Group's committed order book as at 30 September 2015 was £2.7bn, up 1% from the start of the year.
In Construction & Infrastructure, performance continues to gradually improve compared to the first half of the year as further progress is made with completing and closing out a number of its lower margin construction contracts in London and the South East.
As expected, Fit Out has continued to trade strongly, with activity at similar levels to the first half of the year, however at improved margins. Likewise, progress in Affordable Housing has been as expected with a significant proportion of its open market house sales scheduled for completion in the fourth quarter. Within Affordable Housing, the response maintenance activities remain on track to deliver the previously stated target of a minimum of break-even by 2016.
Progress on Urban Regeneration's active development schemes has been as expected. The final scheduled completion of some developments is, however, dependent upon third party construction programmes in the fourth quarter. Investments' performance remains in line with previous guidance, with an operating loss for the year expected of between £1m-£2m due to the phasing of its schemes.
Average daily net debt from the start of the year to 28 October was £55m (of which £18m is non-recourse), in line with the anticipated investment programme in the Regeneration activities of Urban Regeneration and Affordable Housing.
The Company is hosting an evening reception for financial analysts and institutional investors in London this evening. No new material information will be disclosed.
ENDS
Morgan Sindall Group
Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of c£2.2 billion, employing around 5,700 employees and operating in the public and commercial sectors. It operates through five divisions of construction and infrastructure, fit out, affordable housing, urban regeneration and investments.
ENQUIRIES:
Morgan Sindall Group Tel: 020 7307 9200
John Morgan, Chief Executive
Steve Crummett, Finance Director
Brunswick Tel: 020 7404 5959
Jonathan Glass
Alison Kay