Business
COVID-19 Update
COVID-19 Update.
About this update from Morgan Sindall Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 4631H\n Morgan Sindall Group PLC\n 25 March 2020\n \n \n \n \n \n \n \n 25 March 2020\n \n \n \n \n \n Morgan Sindall Group plc\n \n \n \n \n \n COVID-19 Update\n \n \n \n \n Morgan Sindall Group plc ('the Group'), the construction and regeneration group, provides the following update in respect of Covid-19.\n During the first 10 weeks of the financial year, the Group continued to perform well and in line with its expectations, with continued strategic and operational progress made across all its activities.\n The health and wellbeing of its people, partners and the public is the Group's overriding priority and across the business, a wide range of continuity and mitigation planning has been put in place to ensure, as far as possible, the safe operational continuity of the business in line with Government guidance.\n The Group is now experiencing disruption to its operations in a number of areas. Certain construction sites have already closed under instruction from the relevant clients and this is expected to increase across a number of divisions and activities. In addition, activity on other sites and projects is slowing and progress with some development schemes in the regeneration activities is becoming more uncertain. \n As a consequence, it is anticipated that the extent of the overall disruption will inevitably have a material impact on Group profitability for the year. Given the evolving and dynamic nature of the situation, it is too early to quantify the impact and so the Group is withdrawing its previous market guidance until greater clarity returns.\n The Group continues to benefit from a strong financial position. At 31 December 2019, the Group had year-end net cash of £193m (of which £57m was held in jointly controlled operations or held for future payment to designated suppliers).\n For the current year, average daily net cash from 1 January to 20 March was £132m. Net cash as at 20 March was £102m (including £60m held in jointly controlled operations or held for future payment to designated suppliers).\n In addition, the Group has committed bank facilities of £180m and as a precautionary measure, the Group has drawn on these facilities in full to provide control over its own cash resources. It should also be noted that the Group has no defined benefit pen...