Morgan Sindall reveals strong start to the year

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Morgan Sindall has revealed it has had a strong start to the year, as its order book increases by 8%, according to the group’s latest trading update

Morgan Sindall says it has had a strong start to the year and all divisions have made further positive operational and strategic progress.

The committed order book as of 31 March 2019 increased by 8% from the year-end to £3.8bn. The regeneration & development pipeline grew by 2% from the year-end to £3.2bn.

Based on the performance to date and the current visibility of future workload, Morgan Sindall has revealed it is on track to deliver a full year performance in line with its expectations.

The group’s cash position remains strong. Average daily net cash since the start of the year to 30 April was £138m, an increase of £12m over the same period last year. As a result, it is expected that the average daily net cash for the year will be in excess of £85m.

Construction & Infrastructure has continued its focus on contract selectivity and operational delivery and is anticipated to deliver the expected margin improvement in the year.

Fit-out has performed as expected against the backdrop of a general tightening in overall market conditions.

Property Services is delivering its expected margin growth and is the most significant contributor to the growth of the group order book.

Partnership Housing has performed as planned and is beginning to deliver the expected improvement in its operational delivery.

The timing of developments and scheme completions in Urban Regeneration have progressed as scheduled, with average capital employed for the year expected to be c£95m, as previously guided.

John Morgan, chief executive of Morgan Sindall, said: “We have had a strong start to the year and the positive momentum coming into 2019 has continued. Our order book is showing good growth and our balance sheet and cash position are in very good shape. We are therefore excited by the opportunities ahead in each of our markets.”

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