Morgan Sindall Share Discussion Threads

[master rsi] 02/11/2023 09:58

MGNS 1,962 +64p / The range is wide £50 to £70 million for full-year results, but they reckon "Fit out division" "slightly above" the top end ...

Morgan Sindall on track to deliver full year expectations

Morgan Sindall Group PLC - London-based construction and regeneration company - Says it remains on track to deliver full year performance in line with its expectations despite challenging marker conditions. Says its Construction and Infrastructure divisions have performed better than expected, with both continuing to benefit from their "ongoing focus on long-term client relationships, operational delivery and risk management". Adds that Fit Out division has continued to trade strongly and is "well-placed" to deliver a full year result "slightly above" the top end of its medium-term target of a range of GB50 million to GBP70 million in annual operating profit.

Chief Executive Officer John Morgan says: "General market conditions remain challenging yet manageable. Against this backdrop, our high-quality secured order book and our operational delivery capabilities give us great confidence for the rest of the year, and we're on track to deliver a full year performance which is in line with our expectations."

[villarich] 02/11/2023 07:50

In line with expectations trading statement = 7% drop today

[daisylove] 25/10/2023 14:32

Another reason could be that I added, which is always like touching a tottering tower of crockery.

[willie99] 25/10/2023 13:06

Last year the div was paid on 26 Oct and the interim trading statement was 2 Nov.

This year the div will be paid on 26 Oct (same as last year), however their website just says the interim trading statement will be Nov… i.e. no precise date.

My thinking is that MGNS were planning to issue the trading statement on, or about, 2 Nov, but have postponed the date (without giving a new date) for some reason. In the current market, people assume the worst, and the share price falls.

I could be wrong, but it would be unusual for a company not to have a firm date for their Nov interim trading statement, when Nov is only six days away.

Does anyone have any other explanation for the sudden drop in SP?

[daisylove] 25/10/2023 12:06

Div payment tomorrow. One would expect a rise so that dividend reinvestment costs more!

[thamestrader] 25/10/2023 11:04

Does anyone now something I don't?

[thorpematt] 05/10/2023 18:10

Well I don't think there is much fallout. Almost all of the contractors have yet to include any of their works into any forecasts - and thus forecast are unchanged.

Kier for example already addresed the issue in a recent update, telling the market that it had made no asumptions in any forecasts relating to phases 2

Phase 1 continues for another decade and those forecast will of course remain as was.

Consultacies wil be the only ones likely to see any short term opportunities dry up.

In theory the money allocated should get distributed to a wider array of projects. Most likely the infastructure companies will be beneficiaries. In practice politicians looking for budget savings may well spend monies elsewhere. But that remains to be seen.

[cruelladeville] 05/10/2023 15:49

AFAIK, MGNS has no exposure to HS2. Just caught up in the fallout. I expect.

[mboy010] 05/10/2023 15:18

Presumably this will be concerning investors.

[thamestrader] 05/10/2023 08:27

back up to full holding now

[thamestrader] 03/10/2023 08:30

Back in at 1997p. A smaller batch than before, might buy some more when they go ex-div this week.

EDIT: not the best timing!

[cruelladeville] 15/9/2023 18:55

True. MGNS still cheap though for a debt free high quality business with a growing order book? Bought in a few months ago at a shade under 1400p so I'm quite happy.

[thamestrader] 15/9/2023 15:22

Never fall in love with a stock, they said.

So I had to let go at 2091p this morning.

[eigthwonder] 12/9/2023 13:48

It helps that the founder still has his name on the company and most of his wealth tied up in it - he'll try very hard to maintain and grow that dividend

[cruelladeville] 11/9/2023 10:10

Nice to see +£20.00 here again.

[thamestrader] 22/8/2023 15:02

What a great share this has been this year. Totally untroubled by the market chaos.

[piedro] 10/8/2023 14:34

FWIW,
A comparison between Morgan Sindall & Kier Group



data taken from: Construction Enquirer - Top 100 contractors – wins in year to July

[johnrxx99] 03/8/2023 03:02

Very solid and shows what a class company it is.

[master rsi] 02/8/2023 21:31

1912p -12p / Morgan Sindall hails record results as revenue, profit and orders jump
(Alliance News) - Morgan Sindall Group PLC on Wednesday hailed a record first-half as it reported strong growth in revenue, profit and orders.

The London-based construction and regeneration company said revenue in the half-year to June 30 climbed 14% to GBP1.94 billion from GBP1.70 billion the year before. Pretax profit rose 8% to GBP58.0 million from GBP53.7 million and earnings per share advanced 6% to 100 pence from 94.3p.

The order book of GBP9.1 billion at the year-end was 7% higher than GBP8.5 billion last year and the strong financial performance saw shareholders rewarded with a 9.1% increase in the dividend to 36 pence from 33p.

Chief Executive John Morgan said: "We've had a record first half of the year, notably from our Fit Out business which has delivered another outstanding performance in the period, demonstrating the high quality of this business."

"Although the wider economic backdrop remains challenging, conditions have generally eased across many of our markets as the year has progressed," Morgan said.

The firm, which increased expectations for the full year in June, said there had been no change to forecasts since then and it remains confident of delivering another record performance.

The company noted an excellent performance from Fit Out where operating profit soared 43% to GBP30.4 million from GBP21.2 million. Medium-term targets have been significantly upgraded to reflect market opportunities and the high quality of business, the company said.

Construction delivered good revenue growth, up 20% to GBP470 million, with margin in its target range at 2.6%. Infrastructure posted a strong performance with revenue up 15% to GBP428 million at an operating margin of 3.7%.

But cost pressures and operational challenges in Property Services drove a trading loss of GBP4.1 million compared to an operating profit of GBP2.5 million a year ago.

[riverman77] 02/8/2023 19:15

Strange time to release results. Looks pretty good overall - once again fit out is driving the performance, offsetting weakness in some of the other parts of the business.

[standish11] 02/8/2023 18:34

Commenting on today's results, Chief Executive, John Morgan said:

"We've had a record first half of the year, notably from our Fit Out business which has delivered another outstanding performance in the period, demonstrating the high quality of this business.

Although the wider economic backdrop remains challenging, conditions have generally eased across many of our markets as the year has progressed. Our strong balance sheet, with a substantial net cash position, allows us to continue operating efficiently and effectively and to focus on making the right decisions to drive for long-term sustainable growth.

The positive momentum across the Group is driven by our high-quality and substantial order book across a number of sectors covering the built environment. We upgraded our expectations for the full year in June, primarily based on an anticipation of continued outperformance from Fit Out. Since then, there has been no change to our overall expectations for the Group and we remain confident of delivering another record performance.

Results for H1 released at 6.30pm today!

[cruelladeville] 25/7/2023 18:47

Me too. Bought on the way down at

[thamestrader] 25/7/2023 15:28

Yes, I haven't had these long, but they've served me well.

[cruelladeville] 25/7/2023 13:09

Nice to see a decent run in MGNS shares with the wider market going nowhere. 2000p here soon?

[johnrxx99] 17/7/2023 04:49

Most of the housing is in partnership with Local Councils or other government bodies.

After the next election, assuming there is change, I'd like to think Lovell will do very well.



There is exposure but at the bottom end of the market which should recover faster when interest rates fall.