| Date | Subject |
|---|
24/9/2020
14:17 | mayers: Essential Investor.
Hello. Are we nearing your point of adding in weakness? I imagine it could still fall further judging by earlier falls but worth watching. Perhaps no rush. RNWH and HILS in somewhat similar territory have shown relatively small falls also.
|
07/5/2020
12:26 | master rsi: From Proactive...
Morgan Sindall Group PLC - Morgan Sindall rises as order book remains unchanged despite coronavirus disruption
Morgan Sindall Group PLC (LON:MGNS) shares were on the up on Thursday as the group said its order book had remained unchanged from the year-end position despite disruption caused by the coronavirus pandemic.
In a trading update, the construction group said its secured workload as of 31 March was £7.6bn and that its balance sheet was in “good shape” with net cash of £174mln as of 5 May.
The company also said around 80% of its construction sites were currently operational as well as 75% of infrastructure projects and 70% of fit out projects.
“With this high-quality workload and with the balance sheet in good shape, the group is well-positioned to successfully navigate through these current uncertain times and emerge primed for future success in the medium and longer term”, the company said.
However, Morgan Sindall continued to suspend its forward guidance due to the pandemic uncertainty.
“Our decentralised structure has allowed us to adapt quickly to these evolving circumstances and to rapidly adopt new ways of working, which will stand us in good stead for the future”, said chief executive John Morgan.
“Our strategy remains unchanged, focused on building long-term workstreams in markets that remain attractive. Supported by a strong balance sheet, the actions taken put the Group on the best footing to ensure its continued success", he added.
In a note, analysts at Peel Hunt retained their ‘add’ rating and 1,500p price target on the firm, saying the update provided “encouragement” regarding site reopenings and productivity.
“In addition, net cash of £174mln implies a likely positive average daily net cash position for [the 2020 financial year]”, the broker said, although they added that investors “are likely to look for further evidence of recovery” before rerating the share price.
|
01/3/2020
19:31 | master rsi: MIDAS SHARE TIPS UPDATE: Builder Morgan Sindall
is on the highway to profit as shares rise 24% in just over two years - JOANNE HART FOR THE MAIL ON SUNDAY
Morgan Sindall is a construction group with a heart. The company was co-founded by John Morgan in 1977 and he is still at the helm today, overseeing a business with more than 6,500 employees and turnover of £3.1billion.
The group is involved in hundreds of projects across the country, sometimes for commercial clients, often for local authorities and government.
Schemes include refurbishing halls of residence at the University of Aberystwyth, fitting out a flagship store for Microsoft, building affordable homes across the country, upgrading roads and motorways and working on regeneration projects in towns such as Salford, Slough and Aberdeen.
Building value: Midas recommended Morgan Sindall shares in 2017, when they were £14.10. Today, they are 24 per cent higher at £17.54 and should continue to increase
Many building firms have come a cropper by chasing sales over profit. Morgan Sindall is different. The firm shies away from high-profile, big-ticket projects, focusing instead on smaller contracts where money can be made.
In that vein, Morgan intends to make sure that there is at least £60million of cash on the balance sheet every day in 2020. This is not just hoarding money – it reassures customers and allows the company to bid for projects with long-term prospects.
Morgan is also aware of the need for a strong culture, looking after employees so they stay for longer and looking after customers so they come back for more business. The approach has served Morgan Sindall well.
Midas recommended the shares in 2017, when they were £14.10. Today, they are 24 per cent higher at £17.54 and should continue to increase in value.
Annual results last month showed an 11 per cent increase in profits to £90million and a similar increase in the dividend to 59p.
The group also revealed a 14 per cent rise in secured orders to £7.6billion, with a strong pipeline of future projects across the business. Morgan is particularly excited by the housing division, which operates under the Lovells brand.
This subsidiary has been reinvigorated, following a slack few years. Profits surged 50 per cent in 2019 and further strong gains are expected, reflecting increased investment and new management.
Midas verdict: In 1977, John Morgan was 21 years old and his business was tiny. Last Thursday, Morgan Sindall entered the FTSE 250, even as the shares were caught up in the coronavirus panic, falling from £19.58 to £17.54 last week alone. The decline is undeserved. Existing shareholders should stick with the business. New investors could also take a closer look at this stock.
|
13/12/2019
19:51 | bogdan branislov: Nilushi, I liked your detailed write up on MGNS, you must be conscious of having to fill a giant's shoes since Jonas's retirement, he was IC's best stock picker for a very long time. I would also make mention of growth in balance sheet equity, i.e. shareholder funds. Growth in equity is the true measure of the accumulation of a surplus to shareholders over the longer term. This is a metric that IC curiously ignores, I would have told them that directly but IC decided it no longer wants investors commenting on its articles. With equity growth you need to watch out for the appearance of intangibles, with the exception of the mandatory inclusion of intangibles to be written down over a set period following an acquisition. Struggling businesses with deteriorating balance sheets love to disguise this with additional intangibles. IC stock screens should also include the analysis of equity growth or otherwise. If you look at the 10 year equity data for MGNS, you will see that the equity figure has steadily increased, obviously, like earnings, equity does not need to grow every single year, but a long term trend is very important.
|
06/6/2019
14:42 | galeforce1: cordwainer - the big positive on MGNS for me is that the CEO is the founder with a 10% stake in the business. He's clearly very experienced and he has plenty of skin in the game. So that means that MGNS are going to be a lot more prudent than similar companies when it comes to taking on low-margin work.
Re the macro-economic outlook, I reckon that construction has to be one of the few areas that won't be too badly impacted by a change of govt (which is surely inevitable). But whether any investor wants to be exposed to the UK at the moment is a good question. Things don't look good.
|
25/4/2019
04:12 | bogdan branislov: Interesting investor comment on IC: Morgan Sindall. Unlike the largely flawless CSP, MGNS has one weaker ratio. Margin. Currently under 3%. This is expected to increase, but only to just above 3% or so. Such is the nature of the construction sector, these are the margins that they operate with. Add to that the problems with other sector participants - Carillion, Kier etc and the market is cautious
But a business in a tight margin sector can thrive if extremely well managed. The proof is in the pudding, MGNS has year end net cash of £207M with a market cap of £518M. Nobody can tell me that MGNS is anything other than a well managed thriving business
Growth is difficult to estimate year on year, MGNS forecast modest growth in the previous year, but ended up coming in with 25% growth, again they promise little but deliver strongly. Growth this year is forecast to be flat, but MGNS normally comes in well above forecast. Also, while the divi is c4% this year, the cover is very large, over 3 times. Therefore, at current earnings, even after the dividend has been paid, the growth in balance sheet equity will be around 8%, is this growth any less important to shareholders than earnings growth? But earnings growth comes from MGNS in abundance and even if MGNS have a flatter current year in terms of earnings growth, the growth in balance sheet strength will continue unabated. The trailing PE is just over 9, cash adjust and the mind boggles. Challenging sector, but a great business
I find it fascinating to contrast what is happening to the balance sheet of MGNS compared to others in their sector - Carillion is no more, Kier looks doomed, Galliford has problems.
The thinning out and the weak performance of many in the sector can only help MGNS. If you were a competent local authority chief, the last thing you want to do is to award a long term development contract to a company that could go bust, it could cost you your job and throw the LA into turmoil. You would not touch the likes of Kier with a barge pole
|
05/5/2018
21:53 | bogdan branislov: Nice write up in the Telegraph, interesting investor comment after the article below:
Morgan Sindall is one of only 3 holdings that I hold in a fully invested concentrated SIPP portfolio. My SIPP has grown over 1,000% in 9 years now without any funds being added, which fortunately allowed me to hold my lifetime allowance at the 2012 level.
Morgan Sindall is a high quality growing business on a low forward PE ratio with a huge cash pile. The forward PE once cash adjusted becomes extremely attractive. So many businesses seem to show profits through their P&L yet struggle to generate cash or net asset growth, they always seem to be in debt. Morgan Sindall is a top quality, growing, cash generative and significantly under priced business.
|
19/2/2013
17:14 | barlick: billy whizz
Well said & I could not agree more.
As an overhang from the days when I only had a small amount to invest I have never invested for dividend only but looked for capital growth. In this day & age capital retention is imperative & the board, to me, seem to have acted responsibly in this statement. Cash is King!
Whilst I have seen better financial statements the fundamentals, to me, seem to be in place for growth in the share price so I am in & staying in.
Hopefully, the loss of the superficial dividend investors will result in decreased volatility.
GLA
|
19/2/2013
16:55 | billy whizz: What fascinates me is that there are clearly investors out there who appear to have been surprised by the statement. What planet are they on? I'm just comforted that such a good company is being run thoughtfully and with grit and still offers a useful well-covered div. What with recent rises that are totally against the grain of life, it's rather reassuring to see a solid chunk of reality. I was beginning to wonder where I could sensibly invest but now the neurotics have fled, I can collect more MGNS.
|
23/2/2011
03:50 | spob: Plenty of work for Morgan Sindall
http://www.investorschronicle.co.uk/Companies/ByEvent/Results/Analysis/article/20110222/6900cda8-3e73-11e0-8678-00144f2af8e8/Plenty-of-work-for-Morgan-Sindall.jsp
Created:22 February 2011Written by:Jonas Crosland
Investors Chronicle
Morgan Sindall had a busy year integrating its construction and infrastructure services operations into one division. It also acquired service and maintenance group Powerminster Gleeson and a number of contracts from the now defunct Connaught. Despite that, three of the divisions increased operating profits and the total group forward order book grew 13 per cent to £3.6bn.
The affordable housing division grew profits 8 per cent to £16.1m and the operating margin there rose from 4 per cent to 4.2 per cent. The unit's order book grew from £1.3bn to £1.5bn - thanks to fresh work secured through the Connaught acquisitions - and further work is expected to come through as the group's response maintenance capability is expanded. Meanwhile, office fit-out saw turnover jump 43 per cent to £415m and profits rise to £14.8m, although strong competition as a result of fewer offices to fit out meant that the operating margin fell from 4.7 to 3.6 per cent. But margins improved on the construction and infrastructure side, and the order book there grew 21 per cent to £2bn, although operating profit did fall slightly.
Numis Securities expects adjusted pre-tax profit for 2011 of £45m, giving EPS of 79.8p (from £51.3m and 91.9p in 2010).
MORGAN SINDALL (MGNS)
ORD PRICE: 710p MARKET VALUE: £307m
TOUCH: 710-714p 12-MONTH HIGH: 784p LOW: 480p
DIVIDEND YIELD: 5.9% PE RATIO: 10
NET ASSET VALUE: 514p* NET CASH: £149m
Year to 31 Dec Turnover (£bn) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2006 1.50 47.6 78.2 28
2007 2.11 57.6 93.8 38
2008 2.55 62.3 106.0 42
2009 2.21 44.7 77.9 42
2010 2.10 40.7 70.5 42
% change -5 -9 -9 -
Ex-div: 20 Apr
Payment: 16 May
*Includes intangible assets of £230m, or 532p a share
Guide to the terms used in IC results tables.
More analysis of company results
--------------------------------------------------------------------------------
IC VIEW:
GoodValueMorgan Sindall boasts a diverse revenue stream and a strong balance sheet. Margin pressures are likely to remain in fit-out and construction but, with a tasty yield and a forward PE ratio of just nine, the shares remain attractive. Good value.
Last IC view: Good value, 679p, 29 Oct 2010
|
PLUS1
