Morgan Sindall's regeneration continues to throw off cash

Construction and regeneration group Morgan Sindall said it now expects to be in an average daily net cash position for the year, above its previous guidance, as it enjoyed strong trading and further growth in the order book.

The "positive momentum" continued across the group from 1 July to date, with no noticeable impact from Brexit and performance on track to hit full year expectations.

Committed orders as of 30 September had grown 15% since the previous year end to £3.2bn, up 3% from the half year position, while the regeneration and development pipeline remained broadly flat at £3.2bn

Thanks to better cash management, early completions and some revised phasing, Morgan has been in an average daily net cash position of £48m since the beginning of July, up from an average daily net cash of £5m since the start of the year.

Chief executive John Morgan said all divisions were contributing to the performance.

"We continue to build a high quality order book in our Construction activities, whilst our long term investment in Regeneration means we have a strong and sustainable pipeline. The cash performance of the Group has been strong and we now expect to be in an average daily net cash position for the year, ahead of previous guidance."

Shares in the company, which hit a three-year low around 560p in July, were up 1% on Thursday to 722p.