Business
Pre-close Trading Update
Pre-close Trading Update.
About this update from Morgan Sindall Group Plc
[{"type":"text","content":"\n Morgan Sindall PLC\n02 July 2007\n\nMorgan Sindall plc\n\nPre-close Trading Update\n\nThe Board of Morgan Sindall today announces its trading update for the six\nmonths to 30 June 2007. The Group's interim results will be announced on Monday\n6 August 2007.\n\n\nTrading\n\nOverall the Group is experiencing positive market conditions and has traded in\nline with management's expectations in the first half of the year.\n\nFit Out has continued to experience buoyant markets and the division's order\nbook has further increased since the start of the year. The Board anticipates\nthe fit out market will continue to remain strong through 2007 and consequently\nthe division is expected to deliver strong year on year growth in revenue, ahead\nof our expectations.\n\nConstruction's markets are more favourable this year and consequently the\ndivision is seeing year on year growth in revenue. Its order book is slightly\ndown on the same period last year, albeit the division has two PFI/PPP schemes\nat preferred bidder stage on which the Board expects to reach financial close in\nthe near future.\n\nInfrastructure Services' revenue is growing strongly, as anticipated, as it\ndelivers the major new schemes secured last year. As previously announced, the\ndivision's margin is expected to be below the historic levels of 2% this year as\nthe balance of its workload is towards schemes at an early stage of delivery\nwhen profit recognition is more conservative.\n\nAffordable Housing has been successful in securing its first social housing PFI\nduring the first half of the year and continues to see a healthy pipeline of\nDecent Homes and mixed-tenure opportunities.\n\nThe Group's current forward order book, excluding the impact from the recent\nproposed acquisition, is £3.6bn, an increase of 9% since the beginning of the\nyear, reflecting key schemes being secured by each of the divisions over the\npast six months. The Board expects average cash balances for the six months to\n30 June 2007 to be higher than in the previous year. Overall the outlook\nremains very encouraging with growth in all our markets.\n\nFurther to the announcement on 4 June, a circular seeking approval from\nshareholders for the acquisition of Amec Developments ('ADL') and and Amec\nDesign and Project Services ('DPS') will be sent to shareholders shortly, with\nan EGM conv...