Pre-close Trading Update

Morgan Sindall PLC
28 June 2006


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 2006. The Group's interim results will be announced on Monday
7 August 2006.


Trading

Overall the Group is trading in line with expectations and seeing year on year
growth.

Fit Out's market has grown strongly during the first half of the year and the
division has been successful in securing new contracts with a total value of
£231m.  Consequently this division is expected to make a higher contribution for
the full year compared to our previous expectations.

Construction continues to be successful in winning contracts in its target
sectors of health, education, light industrial and commercial.  Revenue is
expected to be in line with the previous year and the order book has been
maintained.

Infrastructure Services has seen modest revenue growth.  The division has
undergone a reorganisation to ensure it has the right balance of resources to
match its future workload and the costs of this will impact the current year. In
March the division acquired a non-track rail infrastructure business, which has
attractive prospects due to the investment to be made in the London Underground
network over the medium term. Overall, the division has been successful in
securing £330m of new contracts in the first half of the year including the
recent two year extension to its water framework contract with Scottish Water
Solutions.  In addition the division has been appointed preferred bidder with
its partner for a seven-year, £420m contract to upgrade gas networks across the
North of England for United Utilities as previously announced.  Consequently we
expect a return to historic levels of profitability in 2007.

Affordable Housing continues to grow strongly.  The continuing Decent Homes and
mixed tenure opportunities give us confidence in the market's medium term
strength.  As in previous years, profit will be weighted to the second half
reflecting the timing of open market house sales.

Overall the Group's order intake in the first half of the year has been strong,
reflecting the success in securing longer term contracts in Infrastructure
Services and the strength of the Fit Out market.  The forward order book is
£3.1bn, an increase of 11% since the beginning of the year.  Average cash
balances will be lower than in the previous year, reflecting the recent
acquisition and further investment in working capital at Affordable Housing.

John Morgan, Executive Chairman commented:

'The Group has made further progress in the first half of 2006, winning a number
of new contracts giving us another record order book.  All of our market sectors
are growing, which offers exciting opportunities and provides a positive outlook
for the Group.'

                                                                    28 June 2006



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








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