Pre-Close Update

15 Dec 2005 07:00

Morgan Sindall PLC15 December 2005 Morgan Sindall plc("the Group") Pre-Close Update The Board of Morgan Sindall plc today announces a trading update, prior to itsclose period, for the year to 31 December 2005. The Group's preliminary resultswill be announced in February 2006. Trading Overall, the Group's results for the year ended 31 December 2005 are expected tobe towards the top end of expectations. The Group has traded broadly asanticipated with strong performances again from Fit Out and Affordable Housing. Fit Out has traded strongly throughout the year. Volumes have grown as a resultof an improving market and a further increase in market share. Margins continueto exceed historic levels, supported by further advances in the division'sPerfect Delivery offering. There have also been positive contributions from thenew regional offices in Manchester and Birmingham. Looking ahead the forwardorder book has strengthened since the start of the year and the market outlookremains encouraging. Bluestone has also increased its volumes during the year. This expansion hasbeen assisted by the continued strength of the health and education sectors. Inaddition, margins have improved for the third year in succession as a greaterproportion of work has come from key client, negotiated, framework andinvestment-led opportunities in Bluestone's target sectors. Infrastructure Services volumes have, as anticipated, reduced. However, thedivision has been successful in winning major long term utility frameworkcontracts in the water and gas sectors, shifting the balance of the division'swork from the civil engineering to the utilities sector. Overall the short-termoutlook for the civil engineering market remains subdued. Lovell has continued to see strong market growth with demand for affordablehousing remaining buoyant. The outlook for this division remains exciting withthe shortage of affordable and social properties set to continue well into thenext decade. As expected, average cash in the second half of the year has been slightly belowthat of the first half, reflecting further investment by Lovell as it continuesto 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 expectthis momentum to continue in 2006. I look forward to reporting in more detail inFebruary." 15 December 2005 Enquiries: Morgan Sindall plc Tel: 020 7307 9200Paul Smith, Chief Executive College Hill Tel: 020 7457 2020Alex Walters This information is provided by RNS The company news service from the London Stock Exchange