Despite increased market uncertainty and inflation providing a more 鈥榗hallenging鈥� economic backdrop, Morgan Sindall says that trading remains 鈥榬obust鈥� and its financial results for 2022 are set to be in line with expectations.
Construction activities are expected to deliver an operating margin for the full year within its target range of 2.5% and 3% while the operating margin from Infrastructure activities is also expected to be within its target range of 3.5% to 4%.
The fit-out business is 鈥渨ell-placed to deliver a very strong full year performance鈥�.
Partnership Housing has seen sales low recently, in line with the rest of the market, but the focus on long-term partnerships with public sector clients provides some insulation.
However, Muse, the urban regeneration business, is more exposed to inflation and interest rate increases, which are 鈥減roviding some scheme viability challenges鈥�, the company said.
The total secured workload for the Morgan Sindall Group at 30th September 2022 was 拢8.8bn, up 2% from the start of the year and up 3% from the 30th June half-year point.
聽Within this, the construction secured order book is 拢4.6bn and the regeneration secured order book is 拢4.2bn.
Average daily net cash since 1st January this year has been 拢260m (of which 拢62m was held in jointly controlled operations or held for future payment to designated suppliers). Average daily net cash for the full year is expected to be around 拢250m.
Chief executive John Morgan said: 鈥淚n recent months, increased general market uncertainty together with continued inflationary headwinds have provided for a more challenging economic backdrop.
鈥淒espite this, trading across the group has been robust and with our high-quality secured workload giving good forward visibility, we鈥檙e on track to deliver a full year performance in line with our expectations.鈥澛犅犅犅犅�
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