Trading Update

Ahead of today's Annual General Meeting, Morgan Sindall Group plc ('the Group'), the construction and regeneration group, provides an update on trading and the outlook for the 2024 financial year.

Group performance & outlook

Trading since the start of the year has been as expected and based on its high-quality secured order book for the rest of the year, the Group is confident of delivering a full year performance which is in line with its expectations.

Trading by division

Construction and Infrastructure have both performed as expected, underpinned by their continued focus on long-term client relationships, disciplined contract selectivity, risk management and project delivery.

Fit Out's trading has been very strong. Its first half performance is expected to show significant growth on the prior year and its secured order book provides confidence for the rest of the year.

In Property Services, the underlying operational performance has been as expected, however its first half result will also be impacted by exit costs relating to an underperforming contract.

Partnership Housing has benefited from the improved housing market since the start of the year, with a higher level of sales activity across both mixed-tenure and contracting driving the expected improvement in performance compared to the prior year. The average capital employed for the full year is estimated at c£330m, higher than previous guidance, as the business invests in its partnerships for future growth.

As expected, there has been a lower level of scheme completions in Urban Regeneration compared to prior years and its full year performance is anticipated to be significantly weighted towards the second half. The average capital employed for the year is expected to be c£90m.

Group secured order book

The total secured order book for the Group at 31 March 2024 was £9.0bn, up 1% from the year end and up 1% versus the prior year position.

Balance sheet and net cash

The average daily net cash from 1 January to 30 April was £389m (of which £42m was held in jointly controlled operations or held for future payment to designated suppliers (JVs/PBAs)). The average daily net cash for the same period last year was £281m.

It is anticipated that the average daily net cash for the full year will be well in excess of £300m.

John Morgan, Chief Executive, said:

"Since the start of the year, trading has been as expected and looking ahead to the rest of the year, our high-quality secured order book gives us great confidence of delivering a full year performance which is in line with our expectations."