Morgan Sindall on track to meet its FY expectations

Morgan Sindall said on Wednesday that it was set to deliver a full-year performance in line with its expectations despite a more difficult backdrop.

The construction company said that since its half-year results on 4 August, increased general market uncertainty and rising inflation have made the economic backdrop more challenging. Nevertheless, trading across the group has been "robust", it said.

Trading in the construction and infrastructure segment has been as expected. Construction activities are expected to deliver an operating margin for the full year within the target range of 2.5%-3% and the operating margin in the infrastructure activities is also expected to be within the range, of 3.5% to 4%.

As far Fit Out is concerned, the company said a continued focus on operational delivery and customer experience, together with its order book for the rest of the year, means it is well-placed to deliver a "very strong" full-year performance.

In property services, contract phasing and mobilisations is, as anticipated, driving slightly higher second half activity, although the operating margin continues to be hit by general cost and labour inflation.

Partnership Housing has seen a recent reduction in sales activity in line with the rest of the UK housing industry, "however its focus on long-term partnerships with the public sector provides forward visibility and resilience".

Morgan Sindall hailed a "sizeable and high-quality" workload. As at 30 September, the total secured workload was £8.8bn, up 2% from the year end position. Within this, the construction secured order book of £4.6bn was up 2% from the year end, while the regeneration book of £4.2bn was ahead 3%.