REG - Morgan Sindall Grp - Trading Update

Morgan SindallAnnouncement

02/05/2024 07:00

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RNS Number : 8840M  Morgan Sindall Group PLC  02 May 2024

 

 2 May 2024

 

 

Morgan Sindall Group plc

 

Trading Update

 

Ahead of today's Annual General Meeting, Morgan Sindall Group plc ('the
Group'), the construction and regeneration group, provides an update on
trading and the outlook for the 2024 financial year.

Group performance & outlook

Trading since the start of the year has been as expected and based on its
high-quality secured order book for the rest of the year, the Group is
confident of delivering a full year performance which is in line with its
expectations.

Trading by division

Construction and Infrastructure have both performed as expected, underpinned
by their continued focus on long-term client relationships, disciplined
contract selectivity, risk management and project delivery.

Fit Out's trading has been very strong. Its first half performance is expected
to show significant growth on the prior year and its secured order book
provides confidence for the rest of the year.

In Property Services, the underlying operational performance has been as
expected, however its first half result will also be impacted by exit costs
relating to an underperforming contract.

Partnership Housing has benefited from the improved housing market since the
start of the year, with a higher level of sales activity across both
mixed-tenure and contracting driving the expected improvement in performance
compared to the prior year. The average capital employed for the full year is
estimated at c£330m, higher than previous guidance, as the business invests
in its partnerships for future growth.

As expected, there has been a lower level of scheme completions in Urban
Regeneration compared to prior years and its full year performance is
anticipated to be significantly weighted towards the second half. The average
capital employed for the year is expected to be c£90m.

 

Group secured order book

The total secured order book for the Group at 31 March 2024 was £9.0bn, up 1%
from the year end and up 1% versus the prior year position.

Balance sheet and net cash

The average daily net cash from 1 January to 30 April was £389m (of which
£42m was held in jointly controlled operations or held for future payment to
designated suppliers (JVs/PBAs)). The average daily net cash for the same
period last year was £281m.

It is anticipated that the average daily net cash for the full year will be
well in excess of £300m.

John Morgan, Chief Executive, said:

"Since the start of the year, trading has been as expected and looking ahead
to the rest of the year, our high-quality secured order book gives us great
confidence of delivering a full year performance which is in line with our
expectations."

 

ENDS

 

 

 Morgan Sindall Group  Tel: 020 7307 9200

 John Morgan

 Steve Crummett

 Brunswick

 Jonathan Glass        Tel: 020 7404 5959

 Nina Coad

Note to Editors

Morgan Sindall Group

Morgan Sindall Group plc is a leading UK Construction & Regeneration group
with annual revenue of £4.1bn, employing around 7,700 employees and operating
in the public, regulated and private sectors.  It reports through six
divisions of Construction, Infrastructure, Fit Out, Property Services,
Partnership Housing and Urban Regeneration.

 

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