Pre-Close Trading Statement

RNS Number : 3490K
Morgan Sindall PLC
18 December 2008

18 Dec 2008
Morgan Sindall plc
Morgan Sindall plc, the construction and regeneration group, provides the following period end trading update in advance of the
announcement of its preliminary results for the year ended 31 December 2008, expected to be in late February 2009.

Trading

Morgan Sindall remains on track to achieve its expectations for a record profit in the current year and continues to be well positioned
as a result of its broad spread of activity across the construction and regeneration sectors. Our strategy remains one of developing market
leadership in all the sectors in which we operate.

Fit Out has continued to perform strongly in the second half of the year. As previously stated we continue to expect a fall in demand as
we enter 2009, although our broad sector spread and focus on quality leadership should offset this to some extent.

Construction is trading in line with our expectations and is well placed to face the challenges in the general construction market, with
over 70% of its workload coming from the public sector. Our strength in the education and healthcare sectors in particular should help us to
benefit from Government plans to bring forward public spending in these areas.

Infrastructure Services continues to benefit from the buoyant infrastructure market. It has continued to strengthen its market position
by further developing its market leading positions in tunnelling, transport, water and utilities. The division's expertise in tunnelling
means it is well placed as a number of major tunnelling projects are procured over the next twelve months.

Affordable Housing is continuing to secure and deliver refurbishment and new build social housing projects, which is helping to largely
offset the impact of the downturn in open market housing. The affordable housing sector remains a key Government priority and the recent
announcement to accelerate spending in this area is encouraging.

Urban Regeneration was successful in securing the �350m Swindon town centre regeneration scheme in November and it continues to progress
three further large regeneration projects currently at preferred bidder stage. In the short term the market will remain subdued and the
division is therefore focusing on renegotiating current agreements to ensure it is well positioned when the market recovers.

Outlook

The Group is financially robust and remains on track to achieve a record result in 2008 with each of our divisions performing in line
with our expectations. The forward order book remains strong at �3.8bn and in addition to this Urban Regeneration's development pipeline has
increased to �1.3bn. In the current economic climate each division is putting an increased emphasis on cash management, cost reduction and
supply chain improvements, as well as responding to market growth opportunities where they present themselves. We therefore remain well
placed to meet the challenges and opportunities we face in 2009 and to deliver long term sustained growth.

Enquiries:
Morgan Sindall plc Tel: 020 7307 9200
Paul Smith, Chief Executive
David Mulligan, Finance Director

Blythe Weigh Communications Tel: 020 7138 3204
Tim Blythe Mob: 07816 924626
Paul Weigh Mob: 07989 129658

This information is provided by RNS
The company news service from the London Stock Exchange

END

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