Pre-close Trading Update

Morgan Sindall PLC
27 June 2005


Morgan Sindall plc

Pre-close Trading Update


The Board of Morgan Sindall today announces an update of trading for the six
months to 30 June 2005. The Group's interim results will be announced on Monday
8 August 2005.


Trading

The Group is trading in line with expectations and seeing growth especially in
the fit out and affordable housing sectors.


Fit Out has traded strongly during the first half of the year with the
commercial property market showing signs of further improvement.  As anticipated
margins have improved as Fit Out continues to increase its market share and the
new regional offices in Birmingham and Manchester are trading positively.  The
outlook remains encouraging with the forward order book increasing further from
the start of the year.


Construction has continued to improve its business with success in securing the
financial close of its third NHS LIFT framework in South East Hampshire as well
as further work under framework arrangements.  The three offices and associated
contracts acquired at the end of 2004 have been integrated successfully.  These
operations have contributed to the division's turnover and profit growth and
will enhance earnings in the current year.  The market remains buoyant with
Government investment in the health and education sectors set to continue.


Infrastructure Services is seeing the mix of its business change with utilities
work growing strongly following the award of major framework contracts with NGT
in the Midlands (£350m) and United Utilities in the North West (£450m).  As
previously announced, civil engineering activity is at a lower level than last
year as some large projects draw to an end and as a result, we expect turnover
and profit in 2005 to be lower than that achieved last year.  The division is
bidding for a number of opportunities and is well positioned for the future.



Affordable Housing has seen continued strong growth.  The division's profit for
this year will be weighted to the second half due to the scheduled timing of
open market house sales.  The outlook for the division remains very positive
with the Decent Homes and Sustainable Communities programmes anticipated to
continue to 2010 and beyond.



Overall the Group's order intake in the first half of the year has been strong
reflecting the success in securing longer term framework contracts.  The forward
order book now stands at £2.9bn, an increase of 29% since the beginning of the
year.  Average cash balances have been maintained with investment in work in
progress at Lovell balanced by cash generation from other parts of the Group.



John Morgan, Executive Chairman commented:

'The Group has traded strongly in the first half of the year and I am pleased by
the progress made by each of our divisions.  I remain excited about our
prospects not only for the second half but also in the longer term.  I look
forward to reporting in more detail in August.'

                                                                    27 June 2005

Enquiries:
Morgan Sindall plc                      Tel: [phone]
Paul Smith, Chief Executive
David Mulligan, Finance Director
College Hill                            Tel: [phone]
Matthew Smallwood






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