Contractor鈥檚 construction and infrastructure operations set to produce second-half margin of at least 2%
Morgan Sindall said it expects its construction and infrastructure operations to produce a margin of at least 2% in the second half of the year, according to a trading update issued by the group today.
The contractor said it had seen strong trading in the second half of the year and was expecting total turnover and pre-tax profit figures for the year to the end of December to be in line with analysts鈥� forecasts, with turnover of 拢3bn and pre-tax profit of 拢80.7m. It also expects its average net daily cash figure for the year to be at least 拢90m.
Last year Morgan Sindall reported annual turnover of 拢2.8bn and a pre-tax profit of 拢66m. The group鈥檚 construction arm recently was recently chosen as the preferred bidder for phase one of a 拢385m mixed-use scheme for Hackney Council (pictured).
As well as a second half margin improvement in its construction and infrastructure business Morgan Sindall said its fit-out operation was expected to deliver turnover and profit growth for the year, while its property services had seen an improved second half margin performance.
The firm鈥檚 regeneration business was on track, it added, with a costly design and build scheme in London now completed, while its urban generation arm was expected to deliver a slightly improved result compared with expectations.
As at the end of September the group鈥檚 committed order book was 拢3.4bn, down 11% compared with the year end and 5% lower than the half year end position, a position it said was 鈥渃onsistent with a continued focus on contract selectivity and quality of earnings鈥�.
Its regeneration and development pipeline was 拢3.3bn, up 2% versus the year end but down by a similar amount since the half year end.
The group is expected to announce its full year results for 2018 in February next year.
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