Pre-Close Update

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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