AGM & Interim Management Stat
Morgan Sindall plc
06 May 2010
AGM aND INTERIM MANAGEMENT STATEMENT
Ahead of today's Annual General Meeting ("AGM"), to be held at RBS, 250 Bishopsgate, London EC2M 4AA at 12pm, Morgan Sindall plc ("the Group") announces its Interim Management Statement.
At the AGM, John Morgan, Executive Chairman of Morgan Sindall plc, will give the following trading update for the period from 1 January 2010 to date.
"The Group has made a positive start to the year and is trading in line with our expectations.
"Fit Out continues to see improved market conditions driven in particular by demand for larger projects in the professional and financial services sector. The division's short term outlook has improved with the forward order book increasing since the start of the year to a higher level compared with this time last year.
"Construction has made a good start to the year converting a number of its preferred bidder contracts and winning a healthy level of new business. Consequently the order book has increased by around a quarter since the start of the year giving us confidence regarding the outlook for this year although the uncertainty around the impact and timing of future public sector cuts in capital spending remains.
"Infrastructure Services' revenue for the first quarter was, as expected, lower than the comparative period last year largely due to the transition from AMP4 to AMP5 in the water sector and delays in the award of some major infrastructure projects. The division is continuing to pursue a number of major infrastructure opportunities and its outlook remains positive. Having converted all of its preferred bidder opportunities, the division's forward order book has also increased by around a quarter since the start of the year.
"As previously announced, we intend to combine our Construction and Infrastructure Services divisions to create a single, enlarged division trading under the Morgan Sindall name. Both divisions have substantially extended their scope and scale in recent years. This has led to an increase in the delivery of projects which encompass civil engineering and building work by the two divisions, especially in sectors such as rail, aviation and defence. The enlarged division will further enhance Morgan Sindall's ability to bid for and deliver larger and more complex contracts.
"Affordable Housing continues to see improvements in market conditions for open market housing, with reservations increasing by around 50% over the same period last year. Refurbishment and new build social housing volumes in the first quarter were maintained and there has been no significant change to the division's outlook with the forward order book remaining in line with the level at the start of the year.
"As expected, market conditions remain subdued for Urban Regeneration with low levels of occupier demand for commercial property. Nevertheless, the division continues to make progress with planning on a number of its key schemes. It has traded in line with expectations since the start of the year and we continue to expect a modest profit for the year.
"The Investments unit has been successful in achieving financial close on the Hull Building Schools for the Future ("BSF") project in conjunction with the Construction division in the first quarter. Its level of activity is currently higher than in the previous year as it is bidding for a number of BSF projects and is pursuing the next wave of social housing PFIs.
"In summary, the Group's forward order book has increased since the start of the year from £3.2bn to £3.6bn. In addition to the order book, Urban Regeneration's development pipeline remains at £1.4bn. The financial position of the Group remains strong, with average cash for the year to date increasing over the level achieved for the comparable period in 2009. Overall, there have been no significant changes to the Group's financial position since the publication of the Annual Report and Accounts for the year ended 31 December 2009. In conclusion, we have made a positive start to 2010 and with our broad sector spread we remain well positioned to face the challenges ahead and to benefit from opportunities as they present themselves."
- Ends -
ENQUIRIES:
Morgan Sindall plc Tel: 020 7307 9200
Paul Smith, Chief Executive
David Mulligan, Finance Director
Blythe Weigh Communications Tel: 020 7138 3204
Paul Weigh Mobile: 07989 129658
Tim Blythe Mobile: 07816 924626
Notes to Editors:
Morgan Sindall plc is a leading UK construction and regeneration group which operates through five divisions of fit out, construction, infrastructure services, affordable housing and urban regeneration, which are supported by two specialist units of investments and professional services.
This information is provided by RNS
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