AGM Trading Update

RNS Number : 2803X

Morgan Sindall Group PLC

05 May 2016

 

5 May 2016

Morgan Sindall Group plc

AGM trading update

Ahead of today's Annual General Meeting ('AGM'), to be held at Jefferies Hoare Govett, Vintners Place, 68 Upper Thames Street, London, EC4V 3BJ at 10.00am, Morgan Sindall Group plc ('the Group') announces a trading update for the period from 1 January 2016 to date.

Group performance has been in line with the Board's expectations as set out at the time of the full year results on 23 February 2016 and the Group remains in a strong position to deliver on its expectations for the full year.

The Group's committed order book as at 31 March 2016 was £2.9bn, up 2% from the year- end position and the regeneration & development pipeline was up 4% to £3.3bn.

The focus for Construction & Infrastructure has remained on improving its quality of earnings which is supporting the expected steady recovery in performance.

Fit Out has maintained strong momentum, with no significant change in market conditions.

The Partnership Housing business within Affordable Housing has progressed well, focusing on developing its mixed-tenure schemes and is expected to show a weighting towards the second half of the year as usual. Property Services is in line to deliver a break-even performance for the first half of the year, slightly ahead of target.  

Urban Regeneration has made good progress in further developing its existing regeneration portfolio, whilst Investments continues to work closely with the other divisions to secure higher quality construction and regeneration opportunities.

Average daily net debt from the start of the year to 3 May was £29m (of which £15m is non-recourse debt). This was lower than previously anticipated primarily due to better working capital management and the phasing and structuring of investments in Partnership Housing and Urban Regeneration.  Average net debt for the year is now expected to be in the range of £50m-£65m, slightly lower than previous guidance as set out at the time of the full year results of £60m-£70m. 

ENDS

Note to Editors

Morgan Sindall Group

Morgan Sindall Group plc is a leading UK Construction & Regeneration group with a turnover of c£2.4bn, employing around 5,800 employees and operating in the public, regulated and private sectors.  It reports through five divisions of Construction & Infrastructure, Fit Out, Affordable Housing, Urban Regeneration and Investments.

Morgan Sindall Group John Morgan Steve Crummett Brunswick Jonathan Glass Alison Kay

Tel: [phone] Tel: [phone]

 

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