Morgan Sindall increases committed orders by 8%
Morgan Sindall has hailed a “strong” start to the year with all divisions having made “further positive operational and strategic progress”.
In a trading update ahead of the company’s annual general meeting today, the group said its committed order book as at March 31 increased by 8% from the year end position to £3.8 billion. The regeneration & development pipeline grew by 2% from the year end to £3.2bn.
The cash position remains strong, with average daily net cash since the start of the year to April 30 was £138 million, an increase of £12m over the same period last year. As a result, it is expected that the average daily net cash for the year will be in excess of £85m.
Among the divisional highlights, Construction & Infrastructure has continued its focus on contract selectivity and operational delivery and is anticipated to deliver the expected margin improvement in the year.
Fit Out has performed as expected against the predicted backdrop of a general tightening in overall market conditions, while Property Services is delivering its expected margin growth and is the most significant contributor to the growth of the group order book.
Partnership Housing has performed as planned and is beginning to deliver the expected improvement in its operational delivery. The estimated average capital employed for the full year remains at c£150m, with an increase in investment expected across the rest of the year as its developments progress.
John Morgan, chief executive, said: “We have had a strong start to the year and the positive momentum coming into 2019 has continued. Our order book is showing good growth and our balance sheet and cash position are in very good shape. We are therefore excited by the opportunities ahead in each of our markets.”