Morgan Sindall Expects Record 2008

Despite the backdrop of an economic downturn ,Morgan Sindall ,the UK-based construction and regeneration group said that its construction, infrastructure and affordable housing divisions will all perform well in 2008.

In its latest trading statement the company said its construction division was performing in line with expectations and is well positioned to meet the challenges facing the sector.

With around 50% of its activity in the education sector, where the division has secured major contracts with North Lanarkshire Council (worth up to £100 million) and Bideford College (£44million) during the period, and a further 20% in other public sector work, the division is well placed to benefit from any acceleration of the Government's spending plans. In addition, with around 70% of its workload arising from framework arrangements, the division has good visibility on its expected revenues for 2009.

Paul Smith, chief executive, said: “The government's reiteration of its commitment to the affordable housing sector is encouraging and we continue to believe that mixed tenure regeneration will drive growth in the longer term...In the current economic climate each of our divisions is putting an increased emphasis on cash management, cost reduction and supply chain improvements,”

He also added that “The group remains financially robust with average cash balances for the year to date above the level achieved for the corresponding period in 2007 and with £75m of committed banking facilities in place, there having been no significant change in the group's financial position since the publication of the interim report for the six months to 30 June.”