Plot A3 New Bailey ECF

Muse Developments' low-carbon Eden office building is one of several Morgan Sindall Group projects under construction at the moment. Credit: via planning documents

Morgan Sindall on track to meet targets despite inflation, supply issues

“Despite the current market headwinds, we’re well-positioned for the future with continued positive momentum across the group,” said chief executive John Morgan in a trading update on the London Stock Exchange.

Morgan Sindall Group argued that the impact of inflation, supply chain issues and the war in Ukraine had been minimised due to focused souring through the supply chain and operational efficiency.

Morgan Sindall Group comprises regeneration company Muse Developments, fit-out division Overbury, partnership housing firm Lovell Partnerships and construction business Morgan Sindall Construction.

The group had a secured workload of £8.6bn as of 31 March. That represents a 6% increase from that same period in 2021. The construction order book was up 14% from last year, valued at £4.5bn. Regenation’s £4.1bn order book, however, represented a decrease of 1% from the year before.

Morgan Sindall took time in the trading update to share what it was doing regarding the Building Safety Bill, including Lovell Partnerships’ signing of the Developer Pledge Letter to remediate its buildings that are more than 11 metres tall to ensure they are up-to-date regarding the latest fire safety guidelines.

“The additional costs arising from the scope of the pledge in partnership housing and the costs arising across the group in relation to fire safety and the provisions of the new Building Safety Act are not expected to be material to the Group and will be charged through trading results in the ordinary course,” the trading update reads.

Chief executive John Morgan shared why he was optimistic about the group’s financial future.

“Our high-quality secured workload and our operational delivery capabilities give us great confidence for the rest of the year and we expect to deliver a full-year performance in line with our previous expectations,” he said.

Morgan Sindall’s shares were up .5% on the morning of the trading update.

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Yes Morgan Sindall seem to have done some excellent work in Liverpool on the Spine Building and adjacent projects at the Mount Vernon site.

By Anonymous

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