Pre-close Trading Update

2 Jul 2007 07:00

Morgan Sindall PLC02 July 2007 Morgan Sindall plc Pre-close Trading Update The Board of Morgan Sindall today announces its trading update for the sixmonths to 30 June 2007. The Group's interim results will be announced on Monday6 August 2007. Trading Overall the Group is experiencing positive market conditions and has traded inline with management's expectations in the first half of the year. Fit Out has continued to experience buoyant markets and the division's orderbook has further increased since the start of the year. The Board anticipatesthe fit out market will continue to remain strong through 2007 and consequentlythe division is expected to deliver strong year on year growth in revenue, aheadof our expectations. Construction's markets are more favourable this year and consequently thedivision is seeing year on year growth in revenue. Its order book is slightlydown on the same period last year, albeit the division has two PFI/PPP schemesat preferred bidder stage on which the Board expects to reach financial close inthe near future. Infrastructure Services' revenue is growing strongly, as anticipated, as itdelivers the major new schemes secured last year. As previously announced, thedivision's margin is expected to be below the historic levels of 2% this year asthe balance of its workload is towards schemes at an early stage of deliverywhen profit recognition is more conservative. Affordable Housing has been successful in securing its first social housing PFIduring the first half of the year and continues to see a healthy pipeline ofDecent Homes and mixed-tenure opportunities. The Group's current forward order book, excluding the impact from the recentproposed acquisition, is £3.6bn, an increase of 9% since the beginning of theyear, reflecting key schemes being secured by each of the divisions over thepast six months. The Board expects average cash balances for the six months to30 June 2007 to be higher than in the previous year. Overall the outlookremains very encouraging with growth in all our markets. Further to the announcement on 4 June, a circular seeking approval fromshareholders for the acquisition of Amec Developments ("ADL") and and AmecDesign and Project Services ("DPS") will be sent to shareholders shortly, withan EGM convened for late July 2007 and completion expected shortly thereafter. John Morgan, Executive Chairman commented: "The Group is entering a new stage in its development. All of our businessesare performing well and we are very excited by the impact that the proposedacquisition of DPS and ADL will make. These acquisitions take the Group into thegrowing market of mixed-use urban regeneration and strengthens the Group'sposition in the UK's construction market." 2 July 2007 Enquiries:Morgan Sindall plc Tel: 020 7307 9200Paul Smith, Chief ExecutiveDavid Mulligan, Finance DirectorCollege Hill Tel: 020 7457 2020Matthew Smallwood This information is provided by RNS The company news service from the London Stock Exchange