Ahead of today’s Annual General Meeting (‘AGM’), to be held at Jefferies International Limited, Vintners Place, 68 Upper Thames Street, London, EC4V 3BJ at 10.00am, Morgan Sindall Group plc (‘the Group’) announces a trading update for the period from 1 January 2018 to date.
The positive momentum across the Group coming into 2018 has continued and overall trading has been strong.
Construction Activities: The ongoing focus on quality of earnings has enabled Construction & Infrastructure to deliver further margin growth as expected, while Property Services has returned to profit, securing the benefit from last year’s restructuring.
Fit Out has had another period of strong operational delivery. Based upon the performance to date and the order book and visible prospects for the rest of the year, it is now expected that Fit Out will deliver a result for the year which is higher than previously expected and in line with last year.
Regeneration Activities: Partnership Housing and Urban Regeneration have progressed their development schemes as planned and as usual will both likely show a second half weighting to results. In Investments, the recently announced £2bn Property Delivery Joint Venture with Hertfordshire County Council further demonstrated the division’s strategic importance to the Group.
The Group’s committed order book as at 31 March 2018 was £3.7bn, while the regeneration & development pipeline was £3.2bn.
The average daily net cash from the start of the year to 30 April was £126m. As a result, the Group expects that the average daily net cash for the year will be in excess of £70m.
Looking ahead, based upon the performance to date of Fit Out and its prospects for the rest of the year, the Group is on track to deliver 2018 full year results slightly ahead of its previous expectations.
John Morgan, Chief Executive, said:
"We have had a good start to the year and all divisions are continuing to make strategic and operational progress. Our balance sheet and cash position are both very strong and give us the flexibility to continue focusing on quality of earnings in our construction activities, while investing in our regeneration activities to drive long-term value. Our strong order book and customer relationships enable us to look to the future with confidence."
This announcement contains inside information. The person responsible for this announcement on behalf of Morgan Sindall Group plc is Steve Crummett, Finance Director.
Morgan Sindall Group
Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of c£2.8bn and which operates through six divisions of Construction & Infrastructure, Fit Out, Property Services, Partnership Housing, Urban Regeneration and Investments.
Morgan Sindall Group plc Tel: 020 7307 9200
John Morgan, Chief Executive
Steve Crummett, Finance Director
Instinctif Partners Tel: 020 7457 2020