TIDMMGNS
RNS Number : 3516K
Morgan Sindall Group PLC
05 May 2022
5 May 2022
Morgan Sindall Group plc
Trading Update
Ahead of today's Annual General Meeting ('AGM'), Morgan Sindall
Group plc ('the Group'), the construction and regeneration group,
today announces an update on trading and the outlook for the 2022
financial year.
Group performance
The positive momentum across the Group coming into 2022 has
continued and overall trading in the year to date has been in line
with expectations set at that time of the 2021 full year results in
February.
Inflationary pressures and supply issues remain a significant
challenge across the Group, with an already difficult trading
environment being exacerbated by the conflict in Ukraine.
Notwithstanding this, however, the impact continues to be minimised
on most projects through focused sourcing through the supply chain
and ongoing operational efficiency.
Trading by division
Construction & Infrastructure has continued its focus on
contract selectivity and operational delivery and both Construction
and Infrastructure are anticipated to deliver margins in the year
which are in line with their medium-term targets announced in
February.
Fit Out trading remains very strong and its forward order book
visibility provides confidence for the rest of the year.
Property Services has had a slower start to the year than
expected due to lower planned maintenance work, however this is
expected to improve through the rest of the year.
Partnership Housing has continued to see good levels of market
demand, with further strategic and operational progress driving
performance. The average capital employed for the full year
continues to be estimated at cGBP190m.
Progress with Urban Regeneration's developments and schemes has
been as planned, with average capital employed for the year
expected to be cGBP115m.
Group secured workload
The total secured workload for the Group at 31 March 2022 was
GBP8.6bn, up 6% from the corresponding prior year position (level
with the 2021 year-end position).
This comprised the construction secured order book of GBP4.5bn,
up 14% from the prior year (level with the 2021 year-end position)
and the regeneration secured order book of GBP4.1bn, which was down
1% from the prior year (level with the 2021 year-end position).
Building safety
Following the announcement by the Secretary of State for the
Department of Levelling Up, Housing and Communities ("DLUHC") on
Building Safety on 10 January, the Group position set out at the
time of the full year results in February was that the
industry-wide solution was still being determined and that any
liability arising therefrom could not be reliably estimated.
Since then and following the subsequent discussions coordinated
by the Home Builders Federation acting on behalf of its members,
Partnership Housing signed the Developer Pledge Letter ('the
Pledge') which sets out the principles under which life-critical
fire-safety issues on buildings that they have developed of 11
metres and above will be remediated.
The additional costs arising from the scope of the Pledge in
Partnership Housing and the costs arising across the Group in
relation to fire safety and the provisions of the new Building
Safety Act are not expected to be material to the Group and will be
charged through trading results in the ordinary course.
As previously reported, the Group is also subject to the
Residential Property Developer Tax which became effective on 1
April 2022. In addition, the Group also notes the proposal for an
additional Building Safety Levy to be charged on all future
residential developments.
Balance sheet and net cash
The average daily net cash from 1 January to 30 April was
GBP279m (of which GBP68m was held in jointly controlled operations
or held for future payment to designated suppliers (JVs/PBAs)). The
average daily net cash for the same period last year was
GBP290m.
Outlook for 2022
Current market conditions are expected to continue for the
foreseeable future, however, on the basis of the performance to
date and the current visibility of future workload for delivery in
the remainder of the year, the Group is confident of delivering a
full year performance which is in line with its previous
expectations.
John Morgan, Chief Executive, said:
"Despite the current market headwinds, we're well-positioned for
the future with continued positive momentum across the Group.
Our high-quality secured workload and our operational delivery
capabilities give us great confidence for the rest of the year and
we expect to deliver a full year performance in line with our
previous expectations."
ENDS
ENQUIRIES:
Morgan Sindall Group Tel: 020 7307 9200
John Morgan
Steve Crummett
Instinctif Partners Tel: 020 7457 2020
Matthew Smallwood
Bryn Woodward
Morgan Sindall Group
Morgan Sindall Group plc is a leading UK Construction &
Regeneration group with annual revenue of GBP3.2bn, employing
around 6,900 employees and operating in the public, regulated and
private sectors. It reports through five divisions of Construction
& Infrastructure, Fit Out, Property Services, Partnership
Housing and Urban Regeneration.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTBUGDUBSGDGDS
(END) Dow Jones Newswires
May 05, 2022 02:00 ET (06:00 GMT)
Grafico Azioni Morgan Sindall (AQSE:MGNS.GB)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Morgan Sindall (AQSE:MGNS.GB)
Storico
Da Gen 2024 a Gen 2025
