Morgan Sindall PLC
15 December 2005
Morgan Sindall plc
('the Group')
Pre-Close Update
The Board of Morgan Sindall plc today announces a trading update, prior to its
close period, for the year to 31 December 2005. The Group's preliminary results
will be announced in February 2006.
Trading
Overall, the Group's results for the year ended 31 December 2005 are expected to
be towards the top end of expectations. The Group has traded broadly as
anticipated with strong performances again from Fit Out and Affordable Housing.
Fit Out has traded strongly throughout the year. Volumes have grown as a result
of an improving market and a further increase in market share. Margins continue
to exceed historic levels, supported by further advances in the division's
Perfect Delivery offering. There have also been positive contributions from the
new regional offices in Manchester and Birmingham. Looking ahead the forward
order book has strengthened since the start of the year and the market outlook
remains encouraging.
Bluestone has also increased its volumes during the year. This expansion has
been assisted by the continued strength of the health and education sectors. In
addition, margins have improved for the third year in succession as a greater
proportion of work has come from key client, negotiated, framework and
investment-led opportunities in Bluestone's target sectors.
Infrastructure Services volumes have, as anticipated, reduced. However, the
division has been successful in winning major long term utility framework
contracts in the water and gas sectors, shifting the balance of the division's
work from the civil engineering to the utilities sector. Overall the short-term
outlook for the civil engineering market remains subdued.
Lovell has continued to see strong market growth with demand for affordable
housing remaining buoyant. The outlook for this division remains exciting with
the shortage of affordable and social properties set to continue well into the
next decade.
As expected, average cash in the second half of the year has been slightly below
that of the first half, reflecting further investment by Lovell as it continues
to expand.
Overall, the Group's forward order book now stands at £2.84bn.
John Morgan, Chairman commented:
'We are very pleased with the progress the Group has made this year and expect
this momentum to continue in 2006. I look forward to reporting in more detail in
February.'
15 December 2005
Enquiries:
Morgan Sindall plc Tel: 020 7307 9200
Paul Smith, Chief Executive
College Hill Tel: 020 7457 2020
Alex Walters
This information is provided by RNS
The company news service from the London Stock Exchange
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