Morgan Sindall Group plc (‘the Group’) today announces a trading update for the period from 1 July 2018 to date.
Trading in the second half of the year has remained strong and the Group is on track to deliver a full year performance in line with its expectations which were set at the time of the half year results on 8 August 2018.
Additionally, the average daily net cash for the full year is now expected to be in excess of £90m, ahead of previous guidance.
Consistent with the Group’s continued focus on contract selectivity and quality of earnings, the Group’s committed order book as at 30 September 2018 was £3.4bn, down 11% from the year end position (down 5% from the half year), whilst the regeneration & development pipeline of £3.3bn was up 2% from the year end (down 2% from the half year).
Construction & Infrastructure has again delivered further improvement in margin, with both Construction and Infrastructure expected to achieve margins of at least 2% in the second half.
Fit Out has continued to perform well and based upon its visible workload for the rest of the year, is on track to deliver its expected revenue and profit growth performance for the year.
As at 30 September 2018, Fit Out’s order book was £470m, down 13% from the same time last year and down 6% from the year end. Of the total, £275m is for 2019 and beyond. The equivalent amount at 30 September 2017 which related to 2018 and beyond was £355m.
The improved performance of Property Services delivered in the first half of the year has accelerated and a stronger second half margin and profit performance is expected.
Partnership Housing has performed as planned. The ‘design & build’ contracting project in London which was referred to in the half year results was completed in August. Average capital employed for the year is expected to be c£115m-£120m, in line with previous guidance.
The scheduled timings of some scheme completions in Urban Regeneration are running ahead of previous plans and this is anticipated to slightly improve its result for the year ahead of previous expectations. Average capital employed for the year is expected to be c£110m, in line with previous guidance.
Investments has been held back by further slippage in timing of some schemes in its strategic property partnership joint ventures with local authorities, which will impact its performance for the year.
The Group’s cash position remains strong. From 1 July to 26 October, the Group has been in an average daily net cash position of £75m and from the start of the year to 26 October, the average daily net cash was £98m.
Based upon this and current forecasts to the year end, the average daily net cash for the year is now expected to be in excess of £90m.
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.