Morgan Sindall Share Discussion Threads

[douglas fir] 17/4/2018 15:14

hxxps://www.constructionnews.co.uk/10030143.article?utm_source=newsletter&utm_medium=email&utm_campaign=CN_EditorialNewsletters.Reg:%20Send%20-%20Daily%20news&mkt_tok=eyJpIjoiTjJVNE16QmhZbVEzTVRoaCIsInQiOiJyTkkwbHNcL1E4aHZYVnhPQlwvb2Roa3hJVjNnOTNpSlRyOHVQa1NLa21INDRDNkpHRW1LYVF5ck4xNkNkcCtuOWEyeTUrWDRUdmpsWFNhUnUxOVZaMVBXWmhsSmdcL0VxeEFXK1ZPcVVqeVdCeWdLWksxc0oxU0xHaG45bEtiXC91XC9OIn0%3D

Hertfordshire County Council has appointed Morgan Sindall as the JV partner for a £2bn property development programme.
Morgan Sindall Investments has set up a subsidiary to work with the council in developing or disposing of surplus land and property.
A priority for the developments will be to deliver new homes, as well as public facilities and commercial space.
An initial 12 plots of land will be developed by the 50:50 JV, called Chalkdene Developments, that will deliver more than 500 houses.
A further 40 sites have also been earmarked for development.
If all the potential sites are developed they will have a gross development value of £2bn.
Morgan Sindall secured the JV with the council’s Herts Living Ltd property company after a competitive tender process launched by the local authority last May.
The council said it wanted to take a “more active role” in developments with the aim of “improving the financial returns to the council and pace of delivery”.
As its strategic partner, Morgan Sindall will be expected to “provide its development expertise, equity investment and access to private funding”.
The partnership with Morgan Sindall is set to run for 15 years with an option for it to be extended by a further five years.
Morgan Sindall Investments plans to use the group’s development arm Lovell and its infrastructure division to deliver the work.
Morgan Sindall chief executive John Morgan said: “This win demonstrates the potential for our Investments division to become a meaningful contributor to group profits.
“It also reflects our ability to leverage our diversified portfolio of businesses to offer our partners and customers a comprehensive solution spanning strategic partnerships and project delivery.”
Over the past two years Morgan Sindall Investments has moved from securing opportunities for other divisions in the business to generating profit independently through partnerships with bodies such as Slough Borough Council and Bournemouth Borough Council.
The company has said it expects the division to increase its returns in the medium term after it reported operating profit of £0.5m on revenue of £11m in 2017.
Last month Morgan Sindall’s housebuilding arm Lovell secured a £45m deal with Homes England to deliver 200 modular units in Leyland, Lancashire.
Comment

[bogdan branislov] 10/4/2018 18:11

Big price move today. The annual report was obviously impressive, but we expect that from MGNS. Was there anything in the report that we did not already know about? Bogdan

[valuehunter1] 04/4/2018 09:24

Bogdan, agree, looking forward to the AGM update next month and expecting the shares to move forward in anticipation of another positive update. Real cheap given the cash balance, excellent management.

[bogdan branislov] 03/4/2018 14:17

Looking at the chart, we are very close to support levels and near 1 year lows. I think that a break lower is unlikely from here considering the valuation.

[jadeticl3] 03/4/2018 11:24

I am with you bluerunner. I have the cash poised to buy more, believing this is undervalued, but not confident it will not fall lower.

[bluerunner] 03/4/2018 10:47

Bogdan - I don't disagree with your post and have stated that it looks cheap. But it keeps getting cheaper. That is the problem. It would be a matter of timing the right entry point for me.

[bogdan branislov] 03/4/2018 10:23

Blue. MGNS is very cheap right now. Carillion has done MGNS a big favour as government /local authorities will now be very reluctant to let contracts to those companies without a very fat balance sheet. Balance sheets don't come any healthier than MGNS. Any public sector official letting a contract to a firm that goes bust half way will lose his/her job now, it is the ultimate egg on the face for the public sector contract as it results in big contract delays, large additional cost in sourcing another contractor to pick up the work, doubts about the quality of work done as a firm going under often cut corners, susceptibility to the replacement contractor claiming things were worse than indicated with work already completed, wanting more money, more delays etc etc.. MGNS has to do something with the cash, there is so much of it. Personally I would be disappointed with a special divi. MGNS are clearly highly proficient, I would rather see them use their competence and their balance sheet strength to start bidding for larger contracts, just like Peabody. This stock will move on news and move rapidly on news, you don't know when the news will come, forget TA here, MGNS is cheap and it won't stay this cheap for long, put your cash to work for you. Ultimately value/growth investing is about leaving your money lying around in the most extreme under valued growth/quality situations available. Surely you can't feel that c30% cash is better than a c30% MGNS holding! Bogdan

[bluerunner] 29/3/2018 14:05

It does look like good value.However, just broken through support and could go to 1120-ish.If that does not hold then the drop could be steep.I continue to watch for the right moment to buy.

[valuehunter1] 29/3/2018 08:06

These look v cheap, nice net cash on balance too, bought some and looking forward to another positive update in May at the AGM

[hatfullofsky] 14/3/2018 14:25

Nice find, probably the cause of the rise

[piedro] 14/3/2018 11:14

Fingers crossed!

Lendlease and Morgan Sindall left in chase for £4bn Peabody scheme

[mfhmfh] 22/2/2018 10:39

Numis upgrades to buy: 1,565p target price

Peel Hunt reiterates buy: 1,600p target price

Liberium Capital reiterates buy: raises to 1,700p target price

[broadwood] 22/2/2018 10:30

Liberum Capital today reaffirms its buy investment rating on Morgan Sindall PLC [LON:MGNS] and raised its price target to 1700p (from 1650p).

[mfhmfh] 22/2/2018 09:46

bought here on Monday.

looking for share price to return to at least 1,500p when director bought:

'Steve Crummett, Financial Director, bought 16,400 shares in the company on the 3rd November 2017 at a price of 1500.00p. '

GLA.

[broadwood] 22/2/2018 07:59

Broker re- rating?

[valuehunter1] 22/2/2018 07:58

Stonking results, should re-rate to 1500p again, sounds like they really understand the markets they operate in and are now in a position to continue grow and improve margins. Great mgmnt team.

[quant_investor] 22/2/2018 07:42

Barnstorming results this morning. 48% increase in PBT. Dividend for the year up 29%. Healthy increase in margins particularly in construction where they can afford to be highly selective. Focus on affordable housing and urban regeneration which I think adds a defensive quality. Confident Outlook. Looks rock solid to me...a perfect SIPP holding.

[thorpematt] 15/2/2018 11:08

I think this is extremly good value. I also don't blieve that the wider industry sentiment is too problematic for MGNS. If anything there are opportunities which weren't present previously which can be exploited.

BUT I strongly suspect the sentiment of the (stock) market will be what weighs on the stock price here for some time and so the risk of investment is that one's capital could be deployed better elsewhere in the short-term.

As ever much depends on your personal strategy and timescales but "capital deployment risk" is always IMV a relevant issue regardless.

[jadeticl3] 15/2/2018 10:08

Topped up at £11.92. Looks good value to me. It may turn out to be true that Construction generally is no booming, but I bought MGNS not the Construction Industry.

[corlis] 14/2/2018 21:33

at 1210 this will need a short term breather but overall looks good.

[hatfullofsky] 03/2/2018 12:12

Guess hw has good timing ....

Data out earlier showed the UK's construction industry was "teetering on the edge" of contraction last month amid the collapse of Carillion and as Brexit and the surrounding political uncertainty curtailed investment.

The IHS Markit/CIPS UK Construction headline PMI for January was 50.2, down from 52.2 in December and marking a four-month low. It was also well below the consensus estimate of 52.0. Residential building activity slipped into decline, while overall, total industry activity barely rose.

Pantheon Macroeconomics said the collapse of Carillion, which operates in the commercial and public sectors, could not explain why the PMI fell in January.

"Although the PMI remained slightly above the 50-mark that in theory should separate expansion from contraction, all readings below 52 have signalled declining output in practice. Housebuilding was the weakest sub-component; the housing activity index fell below 50 for the first time since August 2016. By contrast, the commercial and civil engineering balances both edged above 50," the economists said.

[hatfullofsky] 02/2/2018 12:29

Naked Trader sold out, Sector out of favour, looks like a good call at the moment.
I got bleeding hands, poverty by a thousand cuts (of that falling knife).

Adding on weakness, numbers look very good and good cash levels this is a sector survivor, just may take a little time now. Hoping we get a recovery up to results.

[varies] 02/2/2018 11:33

I take comfort from the statement on 15 Jan that the collapse of Carillion has no material impact on MGNS.
With the bad news from Capita and SIG (neither being relevant in my opinion)it is hardly surprising that we should see a markdown here.

[ppreston1] 02/2/2018 11:00

I'm out. Something not right here.