Galliford, Costain and Sindall in bullish mood

Grant Prior 13 years ago
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A trio of industry titans reported a strong start to the year today, and a positive outlook for the rest of 2011, despite Government output figures showing construction dragging the economy down.

Galliford Try, Costain and Morgan Sindall all issued bullish trading statements predicting strong progress for the rest of the year despite the challenging economic conditions.

Galliford said its hybrid house building and contracting model was producing results with 72% of the next financial year’s construction revenues already secured.

Chief Executive Greg Fitzgerald said: “The housing market has exceeded our expectations throughout the spring selling season and we have continued to benefit from the strong southern bias of our expansion plan.

“Construction has also benefited from encouraging contract awards in the period and strong cash balances that lead us to expect the Group’s gearing will be minimal at the financial year end.

“We therefore now expect full year results to be significantly ahead of the current range of market estimates and remain confident in delivering the objectives of our expansion plan during the next financial year.”

Costain confirmed a “robust” order book of £2.3bn and preferred bidder positions of over £400m as the group continues to focus on blue chip customers.

The company said: “With trading in line with the Board’s expectations, a strong cash position and  ongoing delivery on its stated strategy, through a combination of organic growth and  selective acquisitions where suitable earnings-enhancing opportunities arise, the Board is confident of further progress in 2011.”

Morgan Sindall said trading was in line with expectations at the construction and infrastructure division following a series of major wins including the £50m Pudding Mill Lane Crossrail contract and a place on two lots of the £500m Smarte East Alliance framework.

Affordable  housing also saw an improvement and the company is on track to collect £28m of debts on work in progress and debts acquired from the Connaught administrators by the end of 2012.

The firm said: “In summary, we have made a positive start to 2011.

“With the strategic progress made last year, our enhanced divisional capabilities and broad sector spread we remain well positioned to make the most of opportunities in growing sectors of our markets and are well placed to face the challenges that lie ahead.”

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