Trading Update and Outlook for 2021
22 July 2021
Morgan Sindall Group plc
This announcement contains information that qualified, or may have qualified, as inside information for the purposes of Article 17 of the Market Abuse Regulations (EU) 596/2014 (MAR). The person responsible for making this announcement is Steve Crummett, Finance Director
Trading Update and Outlook for 2021
Morgan Sindall Group plc ('the Group'), the construction and regeneration group, today announces an update on trading and the outlook for the 2021 financial year.
Since its last Trading Update on 22 April 2021, trading has been strong and the positive momentum across the Group has continued to accelerate. All divisions have performed well and the results for the Group for the six months to 30 June 2021 are expected to show profit before tax1 in the region of £53m, reflecting growth of c238% on the 2020 half year result2 and up c46% on the 2019 'pre-pandemic' comparative period2.
The cash performance has again been strong, with average daily net cash for the first half of £294m (HY 2020: £153m). The net cash as at 30 June was £337m (HY 2020: £146m).
The total Group secured workload as at 30 June was £8.3bn, level with the year-end position and up 5% from the same time last year.
By division:
· Construction & Infrastructure has had strong margin and profit growth in the first half. This performance, together with the forward visibility provided by its order book, indicates a likely out-turn for the full year which is significantly stronger than previously expected.
· Fit Out has continued its high level of performance. Its secured order book as at 30 June was £581m, up 42% from the year end and is a record high for the division, providing confidence in the full year and beyond.
· Property Services is delivering its expected margin improvement as volumes have been restored to their normal run-rates.
· Partnership Housing has continued to see high levels of market demand across the first half and further margin and profit growth is expected through the rest of the year.
· Urban Regeneration is trading as expected as its development schemes progress to plan.
As a result, the Group now anticipates that its full year results for 2021 will be significantly ahead of its previous expectations.
The Group will announce its half year results to 30 June 2021 on 4 August 2021.
1 before amortisation
2 H1 2020 adjusted profit before tax: £15.7m. H1 2019 adjusted profit before tax: £36.3m
ENDS
ENQUIRIES:
Morgan Sindall Group plc Tel: 020 7307 9200
John Morgan, Chief Executive
Steve Crummett, Finance Director
Instinctif Partners Tel: 020 7457 2020
Matthew Smallwood
Rosie Driscoll
Morgan Sindall Group
Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of c£3bn, employing around 6,600 employees and operating in the public, regulated and private sectors. It operates through five divisions of Construction & Infrastructure, Fit Out, Property Services, Partnership Housing and Urban Regeneration.
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