Construction firm Morgan Sindall expects better than expected full year performance
Construction group Morgan Sindall has said it anticipates a full year performance above its initial expectations, despite rising inflation.
The London-based group forecast an average daily net cash of around £290m for the full year, in a trading update on Wednesday.
It said its average daily net cash from July 1 to October 29 was £294m, with £67m held in jointly controlled operations or held for future payment to suppliers.
For the period from 1 January through to 29 October, the average daily net cash was £294m (including £69m in JVs/PBAs).
Its Construction activities are anticipated to deliver a full year operating margin of around three per cent, while the operating margin in the Infrastructure activities was forecast as well above 3.5 per cent.
Morgan Sindall’s ‘Fit Out’ operation had a record period of winning work and converting projects from preferred bidder stage into contract, the firm said.
Fit Out’s order book was £944m, up 62 per cent from the half year position and up 130 per cent from the year end, at the end of September.
The group said it had a robust pipeline of work lined up for the rest of the year.
John Morgan, Morgan Sindall’s 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.”