Morgan Sindall PLC
02 July 2007
Morgan Sindall plc
Pre-close Trading Update
The Board of Morgan Sindall today announces its trading update for the six
months to 30 June 2007. The Group's interim results will be announced on Monday
6 August 2007.
Trading
Overall the Group is experiencing positive market conditions and has traded in
line with management's expectations in the first half of the year.
Fit Out has continued to experience buoyant markets and the division's order
book has further increased since the start of the year. The Board anticipates
the fit out market will continue to remain strong through 2007 and consequently
the division is expected to deliver strong year on year growth in revenue, ahead
of our expectations.
Construction's markets are more favourable this year and consequently the
division is seeing year on year growth in revenue. Its order book is slightly
down on the same period last year, albeit the division has two PFI/PPP schemes
at preferred bidder stage on which the Board expects to reach financial close in
the near future.
Infrastructure Services' revenue is growing strongly, as anticipated, as it
delivers the major new schemes secured last year. As previously announced, the
division's margin is expected to be below the historic levels of 2% this year as
the balance of its workload is towards schemes at an early stage of delivery
when profit recognition is more conservative.
Affordable Housing has been successful in securing its first social housing PFI
during the first half of the year and continues to see a healthy pipeline of
Decent Homes and mixed-tenure opportunities.
The Group's current forward order book, excluding the impact from the recent
proposed acquisition, is £3.6bn, an increase of 9% since the beginning of the
year, reflecting key schemes being secured by each of the divisions over the
past six months. The Board expects average cash balances for the six months to
30 June 2007 to be higher than in the previous year. Overall the outlook
remains very encouraging with growth in all our markets.
Further to the announcement on 4 June, a circular seeking approval from
shareholders for the acquisition of Amec Developments ('ADL') and and Amec
Design and Project Services ('DPS') will be sent to shareholders shortly, with
an EGM convened for late July 2007 and completion expected shortly thereafter.
John Morgan, Executive Chairman commented:
'The Group is entering a new stage in its development. All of our businesses
are performing well and we are very excited by the impact that the proposed
acquisition of DPS and ADL will make. These acquisitions take the Group into the
growing market of mixed-use urban regeneration and strengthens the Group's
position in the UK's construction market.'
2 July 2007
Enquiries:
Morgan Sindall plc Tel: 020 7307 9200
Paul Smith, Chief Executive
David Mulligan, Finance Director
College Hill Tel: 020 7457 2020
Matthew Smallwood
This information is provided by RNS
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