Morgan Sindall Group PLC Trading Update (1659V)
November 01 2017 - 3:00AM
UK Regulatory
TIDMMGNS
RNS Number : 1659V
Morgan Sindall Group PLC
01 November 2017
1 November 2017
Morgan Sindall Group plc
Trading Update
Morgan Sindall Group plc ('the Group') today announces a trading
update for the period from 1 July 2017 to date.
Group performance and outlook
Trading in the second half of the year has continued to be
strong, driven by a further improvement in margin in Construction
& Infrastructure and further margin growth in Fit Out. As a
result, the Group is on track to deliver a full year performance
slightly ahead of its previous expectations which were set at the
time of the half year results on 8 August 2017.
In addition, the Group expects that its average daily net cash
for the full year will be in excess of GBP100m, ahead of previous
guidance of not less than GBP75m.
The Group's committed order book as at 30 September 2017 was
GBP3.8bn, up 5% from the year end position (up 1% from the half
year), whilst the regeneration & development pipeline of
GBP3.3bn was up 2% from the year end (level with the half
year).
Divisional highlights
Construction Activities
-- Construction & Infrastructure has further improved
performance, with its margin benefiting from the ongoing focus on
operational delivery and contract selectivity.
Construction's recovery has continued and accelerated, with
considerable progress towards achieving its medium term margin
target of 2% expected in the second half. Infrastructure has
performed as expected and its mix of work in the second half should
drive the expected margin increase, ahead of its first half
result.
-- Fit Out has achieved further margin progression ahead of its
strong first half result and, based on its visible workload for the
rest of the year together with its current contract delivery
performance, very strong second half margin and profit is
expected.
Its order book as at 30 September 2017 was GBP540m, up 16% from
the year end (down 5% from the half year) of which GBP333m is for
2018, thereby providing a strong underpin to next year's
trading.
-- Property Services is proposing to exit its legacy insurance
services business to better serve its core local authority customer
base and the cost of this, together with the cost of further
streamlining its contract portfolio by exiting underperforming
contracts, will impact its operating result with a loss for the
year of cGBP1m expected.
Regeneration Activities
-- Partnership Housing is focused on delivering construction and
sales completions in its mixed-tenure business and a significant
number of units are scheduled for fourth quarter completion.
Average capital employed for the year is expected to be cGBP100m,
less than previously expected and primarily as a result of deferred
commencements of schemes.
-- The scheduled timing of scheme completions in Urban
Regeneration remains on track and in line with plans. Average
capital employed for the year is expected to be cGBP90m, in line
with previous guidance.
Investments is expected to deliver a small profit for the year
(less than GBP1m), derived mainly from its strategic property
partnership joint ventures with local authorities.
Balance sheet
The Group's cash position remains strong. From 1 July to 27
October, the Group has been in an average daily net cash position
of GBP98m and from the start of the year to 27 October, the average
daily net cash was GBP119m.
Based upon this, the Group is now expected to show average daily
net cash for the year in excess of GBP100m. This is significantly
better than previous guidance as set out at the time of the half
year results of average daily net cash being not less than
GBP75m.
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 cGBP2.6bn, employing around
6,000 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
Helen Tarbet
Rosie Driscoll
This information is provided by RNS
The company news service from the London Stock Exchange
END
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