Morgan Sindall construction margin on track for 2%

Aaron Morby 7 years ago
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Margins at Morgan Sindall’s core construction and infrastructure division have continued to improve with the business now expected to achieve at least 2% in the second half.

The rise is up from 1.7% reported at the half year and 1.1% at the previous full year.

But the focus on contract selectivity and quality of earnings saw the group’s committed order book as at the end of September slide 11% to £3.4bn, compared with the same time last year.

In a trading statement this morning covering performance in the second half of the year, Morgan Sindall also said its profitable fit-out business was on track to deliver its expected revenue and profit growth performance for the year.

But the business’s order book was also down 13% at £470m from the same time last year.

Order levels at the other key group division covering regeneration and development were stable, up 2% from the year-end but down 2% from the last half.

Morgan Sindall’s balance sheet remained strong with the average daily net cash for the year now expected to be over £90m.

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