Morgan Sindall says short term outlook remains challenging

Construction and regeneration group Morgan Sindall said trading, since its profit warning in November, has continued in line with company expectations for the year.

Construction and regeneration group Morgan Sindall said trading, since its profit warning in November, has continued in line with company expectations for the year.

Last month the group warned on full year profit after a further market deterioration in the UK construction industry amid public spending cuts, deferred investment decisions and high levels of competition. Today it added that the short-term outlook remained tough.

"While the short-term outlook for the group into 2013 remains challenging, we are confident in the medium-term outlook from 2014 onwards," it said.

"This reflects our success in securing a number of longer-term opportunities in growing sectors of the market including rail, energy and utilities and infrastructure," it added.

The London headquartered construction services business said its forward order book stands at £3bn with a further £0.7bn of projects at preferred bidder stage.

"In a competitive environment we continue to bid selectively across the group, targeting major project and framework opportunities in all our market sectors and we are already benefiting from increased operational efficiency as a result of the restructuring measures previously announced," it explained.

The company will announce its preliminary results for the year ended December 31st 2012 in February 2013.

Morgan Sindall said it will be reporting the profit on the sale of its equity investments within operating profit, rather than as non-operating profit.

CJ

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

Lab-grown meat: how “moo’s law” will drive innovation
Soft commodities

Lab-grown meat: how “moo’s law” will drive innovation

Jim Mellon and Anthony Chow, co-founders of Aim-listed Agronomics, explain why they believe that “cellular agriculture” will benefit from massive long…
16 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Lab-grown meat: the new agricultural revolution
Soft commodities

Lab-grown meat: the new agricultural revolution

Vegan alternatives are taking off, but the future of food technology lies in lab-grown meat – cultivating steaks and burgers from animal cells, says A…
16 Apr 2021