Morgan Sindall set to out perform market expectations

Grant Prior 2 months ago
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Morgan Sindall is expecting to post results “significantly ahead of its previous expectations” this year.

A trading update this morning revealed business is booming across all divisions and the contractor’s cash reserves continue to grow.

Morgan Sindall said: “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 tax in the region of £53m, reflecting growth of c238% on the 2020 half year result and up 46% on the 2019 ‘pre-pandemic’ comparative period.”

Strong cash performance saw average daily net cash for the first half of £294m compared to £153m in 2020 and the net cash as at 30 June was £337m from £146m)

The total Group secured workload is £8.3bn, level with the year-end position and up 5% from the same time last year.

Performance 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.

The Group will announce its half year results to 30 June 2021 on 4 August 2021.

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