Analysts expecting profit to be around 拢127m this year
Morgan Sindall said trading is continuing as normal despite ongoing inflation and supply chain issues, with the firm confirming its partnership housing business has signed the government鈥檚 pledge to fix cladding on residential buildings of 11m and above.
The firm, which last year revised its profit forecast upwards four times, said trading was in line with expectations despite the 鈥渟ignificant challenge鈥� of rising costs.
In a trading update for the three months to March, the firm said: 鈥淎n already difficult trading environment [is] being exacerbated by the conflict in Ukraine. Notwithstanding this, however, the impact continues to be minimised on most projects through focused sourcing through the supply chain and ongoing operational efficiency.鈥�
At the time of its annual results in February, announced on the day Russia invaded Ukraine, chief executive John Morgan said the firm was expecting 2022鈥檚 figures to be ahead of previous expectations with analysts forecasting pre-tax profit to be around 拢127m this year and close to 拢133m next. Pre-tax profit last year was 拢126m on revenue of 拢3.2bn.
In this morning鈥檚 update, the firm said: 鈥淥n the basis of the performance to date and the current visibility of future workload for delivery in the remainder of the year, the Group is confident of delivering a full year performance which is in line with its previous expectations.鈥�
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The firm said its construction and infrastructure business was on course to hit revised margin targets of between 3.5% and 4% in the medium term while its booming fit-out arm 鈥渞emains very strong鈥�. The firm鈥檚 property services business had seen a slower start to the year because of lower demand for maintenance work 鈥� although this is expected to pick up throughout the rest of 2022.
Partnership housing was seeing 鈥済ood levels of demand鈥� with the firm saying the cost of 鈥渘ot expected to be material to the Group and [which] will be charged through trading results in the ordinary course鈥�.
Group workload was up 6% to 拢8.6bn for the first three months with average daily net cash from 1 January to 30 April standing at 拢279m, down slightly on the 拢290m for the same period last year.
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