The construction company Morgan Sindall has announced that it expects an overall annual performance above original expectations despite rising inflation.
The London-based group forecast in a trading update on Wednesday an average daily net cash position of around £ 290 million for the full year.
Average daily net cash from July 1 to October 29 was £ 294 million, with £ 67 million held in jointly controlled operations or held for future payments to suppliers.
For the period January 1st to October 29th, the average daily net liquidity was £ 294m (including £ 69m in JVs / PBAs).
Construction activities are expected to achieve an operating margin of around three percent for the full year, while the operating margin for infrastructure activities was forecast to be well over 3.5 percent.
Morgan Sindall’s ‘Fit Out’ operation has had a record time winning contracts and converting projects from the preferred bidding stage to contracts, the company said.
Fit Out’s backlog at the end of September was £ 944m, 62 percent more than the first half and 130 percent more than at the end of the year.
The group said they have a solid pipeline of work for the rest of the year.
John Morgan, Chief Executive of Morgan Sindall, said, “Trading across the group remains strong and our high quality and growing workload make us well equipped for the future.
“Inflation in the supply chain remains manageable and based on our current performance and the visibility we have for the remainder of the year, we expect full-year performance to be slightly above our previous expectations.”