Morgan Sindall raises expectations for 2019
Morgan Sindall has raised its previous expectations for its full-year performance in 2019 thanks to improving profit margins within the business.
In a trading update this morning, the company said that it expected further margin improvement in its construction and infrastructure arm where it is focusing on operational delivery, contract selectivity and risk management.
Meanwhile, it also expected a strong performance in the second half of the year in its fit-out business, where it said market conditions had remained “broadly stable” over recent months.
And the improved performance in its property services in the first half of the year has continued, with operating margin for the year now expected to be “well in excess” of 3%.
Morgan Sindall’s partnership housing arm is also “progressing well”, driving the expected growth in margin and profit for the full year.
The total secured workload for the group as at 30 September 2019 was £7.3bn, up 10% from the year-end position but down 2% from the half year. This comprised the secured order book of £4.1bn, up 15% from the year end (down 3% from the half year) and the regeneration & development pipeline of £3.2bn, which was up 4% from the year end (down 2% from the half year).
Morgan Sindall added that it has a strong cash position, with average daily net cash from the start of the year to 31 October of £109m.
John Morgan, chief executive, said: “We continue to make good progress, with positive momentum across the group’s operations. Consequently, we now expect to deliver a full year performance slightly above the board’s previous expectations.
“Our strong balance sheet continues to be a significant differentiator and enables us to make the right long-term decisions for the business which position us well for continued sustainable growth.”