In an update on current trading and outlook for the 2019 financial year, Morgan Sindall added that the average daily net cash for the full year is expected to be in excess of £100 million, also ahead of previous guidance.

The total secured workload for the group as of September 30 was £7.3 billion, up 10% from the year end position. This comprised the secured order book of £4.1bn, up 15% from the year end and the regeneration & development pipeline of £3.2bn, which was up 4%.

Divisional highlights include an expected further margin improvement for construction & infrastructure, a second half strong performance in fit out and a property services operating margin for the year to be well in excess of 3%.

Partnership housing is “progressing well”, with the benefit of the ongoing operational improvements driving the expected growth in margin and profit for the full year, while progress on the various schemes within its urban regeneration development portfolio has been as expected, while investments is on track to deliver a result for the year broadly similar to last year’s.

The group’s cash position remains strong and the average daily net cash from the start of the year to 31 October was £109m. Based upon this and current forecasts to the year end, the average daily net cash for the year is expected to be in excess of £100m (FY 2018: £99m).

Chief executive John Morgan 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.”