Morgan Sindall surging ahead as order book hits £8.9bn

Grant Prior 2 years ago
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Morgan Sindall is raising its profit forecasts again after a significant surge in contract wins saw the contractor’s order book hit £8.9bn.

And the turnover boom is filtering through to the bottom line with construction margins set to hit 3% and infrastructure work top 3.5%.

Construction currently has a secured order book of £4.7bn – up 20% from the year end.

The Fit Out division has had a record period of winning work and converting projects from preferred bidder stage into contract.

At the end of September its order book was £944m – up 62% from the half year position and up 130% from the year end. 

A number of larger contract wins will generate revenue over a number of years giving better long-term visibility compared to its usual project cycle.

Morgan Sindall said inflation in the supply chain and the availability of materials and labour “have remained manageable”

Property Services is still seeing slightly lower planned maintenance activity than expected but its operating margin for the year is expected to be in excess of 3%.

Partnership Housing has continued to see high levels of unit sales and completions as well as construction activity and is well-placed to meet its medium-term return on capital target of 20% for the year.

Urban Regeneration’s active development schemes have progressed as planned but viability challenges exist on some projects not yet commenced.

Average daily net cash from 1 January through to 29 October was £294m.

John Morgan, Chief Executive, said: “Trading remains strong across the Group and our high-quality and growing workload leaves us well set for the future.

“Inflation in the supply chain remains manageable and based upon our current performance and the visibility we have for the rest of the year, we expect to deliver a full year performance which is slightly above our previous expectations.”  

Speaking to the Enquirer Morgan added: ” Having a good cash balance is vital and so is looking after your supply chain – they are fundamental to everything we do.

“We are in the happy position of people wanting to work with us and we are looking to continue like that and not get complacent.”

 

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