Morgan Sindall sees FY results 'slightly above' previous expectations

Morgan Sindall said on Wednesday that its full-year performance was set to be "slightly above" its previous expectations amid continued strong trading.

In an update on current trading, the construction and regeneration company also said the average daily net cash for the full year is expected to be ahead of previous guidance at more than £100m.

At as the end of September, the total secured workload for the group stood at £7.3bn, up 10% from the year end position but down 2% from the half year.

Chief executive John Morgan said: "We continue to make good progress, with positive momentum across the group's operations. Consequently, we now expect to deliver a full year performance slightly above the board's previous expectations.

"Our strong balance sheet continues to be a significant differentiator and enables us to make the right long-term decisions for the business which position us well for continued sustainable growth."

In the construction and infrastructure business, the focus remains on operational delivery, contract selectivity and risk management and the annual performance is expected to show further margin improvement over last year, the company said.

Meanwhile, market conditions in Fit Out have remained "broadly stable" in recent months, with a strong performance expected in the second half.

Property services delivered an improved performance in the first half. This has continued and it is expected that the operating margin for the year will be well in excess of 3%.

Morgan Sindall said Partnership Housing is progressing well, with the benefit of the ongoing operational improvements driving the expected growth in margin and profit for the full year.

In Urban Regeneration, progress is being made on the various schemes within the development portfolio, while the investments segment is on track to deliver a result in line with last year.

At 1055 GMT, the shares were up 2.9% at 1,338p.