Morgan Sindall Group PLC AGM Trading Update (1115E)
May 04 2017 - 1:00AM
UK Regulatory
TIDMMGNS
RNS Number : 1115E
Morgan Sindall Group PLC
04 May 2017
4 May 2017
Morgan Sindall Group plc
AGM Trading Update
Ahead of today's Annual General Meeting ('AGM'), to be held at
Jefferies International Limited, 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
2017 to date.
Group performance
Trading for the financial year to date has been strong, with the
positive momentum entering the year continuing throughout the
period. Each division has performed as expected, with the overall
Group result being driven by further margin and profit growth in
Fit Out and the expected margin improvement in Construction &
Infrastructure.
The Group's committed order book as at 31 March 2017 was up 5%
to GBP3.83bn from the year-end position, while the regeneration
& development pipeline was up 2% to GBP3.28bn.
Divisional highlights
Construction Activities: The higher quality order book and
improved operational delivery in construction has driven further
margin growth in Construction & Infrastructure. Fit Out has had
another successful period of winning work, with its committed order
book as at 31 March up 17% from the year-end position, to a record
GBP544m. This provides significant visibility for the rest of the
year. Property Services has focused on the successful mobilisation
of its contract wins from last year.
Regeneration Activities: Good progress has been made with
Partnership Housing's mixed-tenure housing developments, while the
scheduled timing of scheme completions in Urban Regeneration
remains in line with plans. Consistent with last year, both
divisions are expected to show a second half weighting to
results.
Financial position
As at 31 March, the Group had net cash of GBP115m. The average
daily net cash from the start of the year to 31 March was GBP154m,
higher than previously expected due primarily to better working
capital management in Construction & Infrastructure and Fit
Out.
As a result of this cash performance, the Group now expects that
the average daily net cash for the year will be in excess of GBP50m
and, consequently, the net interest charge for the year will be
lower than was previously anticipated.
Outlook
Based upon the size and quality of the Fit Out order book and
its operational performance to date, and with the lower net
interest charge resulting from the better cash performance, the
Group is on track to deliver 2017 full year results slightly ahead
of its previous expectations set at the 2016 full year results on
23 February 2017.
John Morgan, Chief Executive, said:
"We have had a strong start to the year, and with our strategy
geared towards those areas of the economy we expect to grow
strongly, together with the size and quality of our order book and
pipeline, we are confident that the momentum we have seen so far is
set to continue."
This announcement contains inside information.
The person responsible for this announcement on behalf of Morgan
Sindall Group plc is Clare Sheridan, Company Secretary.
ENDS
Morgan Sindall Group
Morgan Sindall Group plc is a leading UK construction and
regeneration group with revenue of cGBP2.6bn, employing around
6,000 employees and operating in the public, regulated and private
sectors. It operates through six divisions of Construction &
Infrastructure, Fit Out, Property Services, Partnership Housing,
Urban Regeneration and Investments.
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
This information is provided by RNS
The company news service from the London Stock Exchange
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