AGM & Interim Mgmt Statement
Morgan Sindall PLC
22 April 2008
Morgan Sindall plc
22 April 2008
AGM and Interim Management Statement
Ahead of today's Annual General Meeting, to be held at ABN AMRO, 250
Bishopsgate, London EC2M 4AA at 12pm, Morgan Sindall plc ('the Group') announces
its first Interim Management Statement as required by the UK Listing Authority's
Disclosure and Transparency Rules.
At the AGM, John Morgan, Executive Chairman of Morgan Sindall plc, will give the
following trading update for the period from 1 January 2008 to date.
'Morgan Sindall has made a positive start to the year and is trading in line
with our expectations.
'Fit Out's revenue is in line with the same stage last year. The wider fit out
market has held up over the first quarter although the credit crisis has led to
subdued fit out activity in the financial services sector. The division benefits
from an increasingly wide sector spread and the short term order book remains
healthy. As we have commented before, the longer term outlook for the fit out
market remains uncertain.
'Construction has made a satisfactory start to 2008, continuing with its focus
on its key sectors of health, education, light industrial, retail and defence.
Although the commercial sector is quieter, the division continues to see
opportunities in the public sector. The order book has strengthened since the
start of the year and the outlook for the general construction market remains
positive.
'Infrastructure Services has also started the year well securing major new road
projects at the M74 in Glasgow and the A1073 in Lincolnshire, in particular.
There is currently a strong pipeline of opportunities driven by investment in
transport, power and rail infrastructure.
'Affordable Housing has seen growth in revenues in its refurbishment and social
new build activities. Inevitably the division's open market activities have been
impacted by the availability of mortgages to first time buyers and market
conditions are significantly tougher than a year ago. However, it is important
to note that sales of open market homes accounted for less than five per cent of
the Group's revenue in 2007. We expect mixed tenure regeneration to drive future
growth in the sector and the division has been successful in securing a number
of these schemes in the first quarter of the year, including Ellesmere Road,
Shrewsbury and Orleton Park, Wellington.
'Economic conditions are currently creating a degree of uncertainty for Urban
Regeneration, but we do not anticipate a significant impact on the division's
performance due to its resilient business model. With its focus on long term
strategic partnership arrangements the division is well placed with a secure
forward development pipeline and limited exposure to the revaluation issues
currently affecting the property sector. We remain of the view that the
regeneration market is set for significant growth in the long term.
'The Group's order book has been maintained at £4.3bn, the same level as at the
start of the year and average cash balances to date are above those achieved
last year. The financial position of the Group remains strong, there having been
no significant changes to this position since the publication of the Annual
Report and Accounts for the year ended 31 December 2007. In summary, we remain
on track for 2008 although any prolonged slow down in certain sectors may impact
2009 and beyond.'
Morgan Sindall plc Tel: 020 7307 9200
Paul Smith, Chief Executive
David Mulligan, Finance Director
Blythe Weigh Communications Tel: 020 7138 3204
Tim Blythe
Paul Weigh
This information is provided by RNS
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