Morgan Sindall Group PLC Trading Update (9360F)
November 01 2018 - 3:00AM
UK Regulatory
TIDMMGNS
RNS Number : 9360F
Morgan Sindall Group PLC
01 November 2018
1 November 2018
Morgan Sindall Group plc
Trading Update
Morgan Sindall Group plc ('the Group') today announces a trading
update for the period from 1 July 2018 to date.
Group performance
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 GBP90m, 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 GBP3.4bn, down 11% from the year
end position (down 5% from the half year), whilst the regeneration
& development pipeline of GBP3.3bn was up 2% from the year end
(down 2% from the half year).
Divisional highlights
Construction Activities
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 GBP470m, down
13% from the same time last year and down 6% from the year end. Of
the total, GBP275m is for 2019 and beyond. The equivalent amount at
30 September 2017 which related to 2018 and beyond was GBP355m.
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.
Regeneration Activities
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 cGBP115m-GBP120m, 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 cGBP110m, 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.
Balance sheet
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 GBP75m and from the start of the year to 26 October, the average
daily net cash was GBP98m.
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 GBP90m.
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 cGBP2.8bn, employing around
6,400 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
Rosie Driscoll
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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