Morgan Sindall Group PLC Trading Update (1885O)
03 November 2016 - 6:00PM
UK Regulatory
TIDMMGNS
RNS Number : 1885O
Morgan Sindall Group PLC
03 November 2016
3 November 2016
Morgan Sindall Group plc
Trading Update
Morgan Sindall Group plc ('the Group') today announces a trading
update for the period from 1 July 2016 to date.
The positive momentum across the Group in the first half of the
year has continued with strong trading and further growth in the
order book. As such, the Group is on track to deliver full year
results in line with its expectations which were set at the time of
the half year results on 2 August 2016. The EU Referendum result
has had no noticeable impact on the performance of the
business.
In addition, a further strong cash performance means that the
Group now expects to be in an average daily net cash position for
the year, ahead of previous guidance.
The Group's committed order book as at 30 September 2016 was
GBP3.2bn, up 15% from the year end position (up 3% from the half
year position) whilst the regeneration & development pipeline
remained broadly level at GBP3.2bn.
Construction Activities
-- Construction & Infrastructure has benefited from its
higher quality order book and its focus on operational delivery
which have supported the further gradual improvement in
performance.
-- Fit Out has again delivered further margin progression ahead of its first half performance.
-- Property Services has focused on the delivery of its more
recent contract wins announced in the first half and is on track
deliver a modest profit for the year.
Regeneration Activities
-- Partnership Housing has been active on construction to secure
fourth quarter completions in its mixed-tenure business which will
deliver the expected accelerated growth in the second half. The
division has seen a sizeable increase in its dialogue with Local
Authorities and Housing Associations on opportunities for future
land and development partnerships. These are yet to be reflected in
the pipeline.
-- Urban Regeneration has benefited from the practical
completion of a significant proportion of the second residential
block of the first phase of its Lewisham Gateway development,
whilst all its other active development schemes continue to make
good progress, in line with expectations.
Investments continues to work closely with other divisions to
secure high quality construction and regeneration
opportunities.
The Group's cash performance has been strong. From 1 July to 31
October, the Group has been in an average daily net cash position
of GBP48m and from the start of the year to 31 October, the average
daily net cash was GBP5m. This significant improvement has been due
to a combination of factors: ongoing improved working capital
management; earlier than expected completions on some regeneration
schemes; and the revised phasing of certain regeneration scheme
investments in the ordinary course.
Based upon this, the Group is now expected to show average daily
net cash for the year in excess of GBP5m. This is significantly
better than previous guidance as set out at the time of the half
year results of average daily net debt being no greater than GBP45m
and compares to average daily net debt of GBP53m in the prior
year.
As of close of business on 31 October, the Group had net cash of
GBP78m.
John Morgan, Chief Executive, said
"The positive momentum across the Group in the first half of the
year has continued with strong trading and further growth in the
order book, with no noticeable impact from the EU Referendum
result. As such, the Group is on track to deliver full year results
in line with its expectations which were set at the time of the
half year results on 2 August 2016.
All divisions are contributing to this performance. We continue
to build a high quality order book in our Construction activities,
whilst our long term investment in Regeneration means we have a
strong and sustainable pipeline. The cash performance of the Group
has been strong and we now expect to be in an average daily net
cash position for the year, ahead of previous guidance."
The Company is hosting an evening reception for financial
analysts and institutional investors in London on 22 November 2016
where there will be an opportunity to meet with divisional
management. For further information, please contact Jo Howe
(joanne.howe@morgansindall.com).
ENDS
Morgan Sindall Group
Morgan Sindall Group plc is a leading UK construction and
regeneration group with revenue of cGBP2.4 billion, employing
around 5,700 employees and operating in the public and commercial
sectors. It operates through six divisions of construction &
infrastructure, fit out, property services, partnership housing,
urban regeneration and investments.
ENQUIRIES:
Morgan Sindall Group Tel: 020 7307 9200
John Morgan, Chief Executive
Steve Crummett, Finance Director
Brunswick Tel: 020 7404 5959
Jonathan Glass
Alison Kay
This information is provided by RNS
The company news service from the London Stock Exchange
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