Morgan Sindall on track despite inflationary headwinds

In a trading statement this morning covering the first quarter of the year, chief executive John Morgan said the group’s overall order book remained stable at £8.6bn.

Of this total, the construction secured order book was up 14% on a year ago at £4.5bn and level with the 2021 year-end position.

Morgan said that inflationary pressures and supply issues remained a significant challenge across the group, with an already difficult trading environment being exacerbated by the conflict in Ukraine.

“Notwithstanding this, however, the impact continues to be minimised on most projects through focused sourcing through the supply chain and ongoing operational efficiency,” he said.

He added that the Construction & Infrastructure business continued its focus on contract selectivity and operational and predicted it would deliver margins in line with expectations.

Trading at the fit-out business was also reported to be very strong with good forward order book visibility.

“Despite the current market headwinds, we’re well-positioned for the future with continued positive momentum across the group, said Morgan.

“Our high-quality secured workload and our operational delivery capabilities give us great confidence for the rest of the year and we expect to deliver a full-year performance in line with our previous expectations.”

Average daily net cash in the first three months of 2022 stood at £279m, slightly down from £290m during the same time last year.



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