Business
Pre Close Trading Statement
Pre Close Trading Statement.
About this update from Morgan Sindall Group Plc
[{"type":"text","content":"\n Morgan Sindall PLC\n13 December 2007\n\n\nMorgan Sindall plc\n\nPre-close Trading Update\n\nThe Board of Morgan Sindall today announces a trading update, prior to its close\nperiod, for the year to 31 December 2007. The Group's preliminary results will\nbe announced in February 2008.\n\nTrading\n\n\nThe Group continues to perform in line with management expectations for the\ncurrent year and the positive outlook for 2008 across all our business areas\nremains unchanged.\n\n\nThe Fit Out division is continuing to secure contracts across all market sectors\nand in particular from the financial services sector. Tender enquiry levels\nremain buoyant and management remains of the view that the outlook for 2008 is\nfor similar levels of activity to those of the current year. The order book is\ncurrently at a comparable level to that at the same stage last year giving\nmanagement an informed view on the market for the next six months.\n\n\nThe construction market has steadily improved during the year and the\nConstruction division is seeing strong growth in its revenue as a result of both\norganic growth and the acquisition of the Design and Project Services business\nfrom Amec in July this year. The division continues to focus on key clients and\ncontracts, such as local authority frameworks, which give it greater longer term\nvisibility.\n\n\nInfrastructure Services' market outlook remains positive with key projects\nsecured last year continuing to progress well and it is anticipated that margins\nwill recover to close to 2% for the full year, with further progression\nanticipated next year.\n\n\nAffordable Housing's margin is again expected to be ahead of that in previous\nyears, on revenue at a similar level to 2006. The division continues to see a\nhealthy pipeline of mixed-tenure and Decent Homes opportunities and the outlook\nfor the affordable housing market is positive as it remains a key Government\npriority.\n\n\nFollowing its acquisition in July, Development is trading in line with our\nexpectations and the opportunities for the division remain encouraging. With its\nfocus on long term strategic partnership arrangements, predominately through PPP\nstructures, the division is particularly well placed with a secure forward\ndevelopment programme with minimal exposure to the revaluation issues currently\naffecting the prope...