Morgan Sindall Share Discussion Threads

[essentialinvestor] 01/6/2020 11:29

Possibility of an equity raise on the cards?.

[loobrush] 28/5/2020 23:29

A very good sign from an insider that things are going better than the share price would suggest.

[master rsi] 28/5/2020 21:54

Director dealings:

Morgan Sindall Group (MGNS)
Director name: Lowden,David S
Amount purchased: 4,000 @ 1,243.86p
Value: £49,754.32
Date of the transaction 27 May 2020

[galeforce1] 10/5/2020 20:51

I agree it's a great company and will survive. But currently it's leaking cash like a sieve.

[investing2retire] 10/5/2020 20:20

building sites opening tomorrow should see this moving up as it's a solid company with cash and plenty of in progress projects.

[master rsi] 07/5/2020 12:26

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.

[fredfishcake] 07/5/2020 12:00

Big picture, it wouldn't surprise me to see the Government throw money at infrastructure in an effort to get the economy moving again. I'd think that would be a big positive for MGNS.

[loobrush] 07/5/2020 11:00

Good results in my view and have taken up some shares today and advise others to do so.
Having been in the building game for 30 plus years I think they have a great opportunity now.
Why-firstly they a large and varied forward order book -so plenty of work to get on with.
Secondly they have not stopped work during lockdown only cut back and with the restrictions soon to ease could be back to near normal pronto.
Thirdly what you find during times where less work is available is that material prices and subcontractor costs become more competitive which increase profits.
Price curently is way to low and in my view within a few months will be at least 30% higher.

[piedro] 07/5/2020 08:34

LOL - "huge muddle"

A very positive update under the present circumstances, suggesting control and orderliness plus some useful future projects in the pipeline - AIMHO

[galeforce1] 07/5/2020 07:48

Interesting update. Their operations are obviously still in a huge muddle, with many sites not open and the ones that are open operating at lower productivity.

The strong cash position makes me comfortable about holding MGNS, but I don't think I'm going to add more for now. The share price is basically back to where it was last September. So it has fared reasonably well. Other builders, like TW. where I recently started a position, might offer more opportunity.

[piedro] 30/4/2020 09:08

Winners revealed for £1.5bn YORbuild major works deal

[alphabeta4] 27/3/2020 10:23

Whist in normal circumstances I think this has been a great business I have some serious reservations here in the current circumstances and decided to sell yesterday. FWIW these are some various points as to why, some involve guesswork and I would welcome to be told where where I've got it wrong(!)..
1. Op profit margin of 3%. The moment there is any fixed cost base that becomes a major problem.
2. £102m net cash at 20/3 so a decent start. Note 3 from the final accounts: Trade and other payables £275m, £187m contract assets, £338m of inventories. But trade and other payables £892m, including a £598m accrued expenses line. What is this? If they get stuck with the inventories but need to pay the accounts then cash looks a serious problem before any issues with bad debts etc. Would dwarf the net cash balance.
3. They'd talked about dropping net cash to an average £60m this year from investments in partnership housing, how much of this has already been done?
4. What is the structure of the partnership housing? Is there a risk these will get stuck mid project tying up cash? I presume they are just getting paid to build and are not taking on any valuation on completion risk?
5. Office fit out is 40% of op profit and already had a declining margin from 5.3% to 4.4% due to competition for work. Won't this competition intensify and if virtually everyone is cutting back on capex just how much of this work will be left?
6. The business lost 75% of it's market value in 2008-9 yet as of yesterday's close was off c1/3 in line with the rest of the market. Why not the discount to represent the risk?

[master rsi] 01/3/2020 19:31

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.

[master rsi] 01/3/2020 19:17

galeforce1

re - Morgan Sindall chief executive ups stake

the information was from "ShareCast "

I can see now that the RNS says .... Disposal of Ordinary Shares

[master rsi] 01/3/2020 19:09

Do not click the link above, there are viruses and trying to get into your computer or information about you ( like Amazon )
they are trying it every day with different nicknames

alicejones2
Member since: 29 Feb 2020

[piedro] 28/2/2020 09:56

galeforce1, correct
The RNS stated clearly that John Morgan sold 220k of shares.
He has plenty of options to exercise

[piedro] 28/2/2020 09:56

galeforce1, correct
The RNS stated clearly that John Morgan sold 220k of shares.
He has plenty of options to exercise

[galeforce1] 28/2/2020 09:15

Master RSI - I'm seriously puzzled by that. Where is it from? I think it must be wrong.

I read the 'change in director's holdings' notice as a SALE of 220k shares by John Morgan. It says 'Disposal of Shares' and notes that his current holdings are now slightly lower than before the transaction.

Blackrock increased, Standard Life increased, but John Morgan made a disposal. I decided to make a top-slice partly on that basis.

If I've got that wrong I'm happy to be corrected. These forms are never very clearly laid out.

[master rsi] 27/2/2020 22:36

Morgan Sindall chief executive ups stake

Morgan Sindall revealed on Thursday that chief executive John Morgan had purchased 220,000 ordinary shares in the London-listed construction firm.

Morgan, who has been the group's chief executive since Morgan Lovell and William Sindall merged back in 1994, acquired the shares on Wednesday at an average price of 1,884.38p each, for a total value of £4.14m.

Morgan Sindall Group reported "strong profit growth" in its final results published during the previous week, which it said was driven by a strategic focus on construction and regeneration.

The firm said revenue was ahead 3% for the year ended 31 December at £3.1bn, with its adjusted operating margin improving to 3.0% from 2.9%. Its adjusted profit before tax was 11% higher year-on-year at £90.4m.

As of 1635 Morgan Sindall shares were down 4.79% at 1,790p.

[piedro] 25/2/2020 12:54

FWIW,
Margins growth less in H2

[piedro] 25/2/2020 10:44

RNS Number : 9640D
FTSE Russell
24 February 2020

Further to the FTSE Russell notice released on 20 February 2020 in relation to Sophos (UK): Constituent Deletion, please note the FTSE 250 Replacement.

All other details remain unchanged. Please see updated notice below:

Sophos Group (UK): Constituent Deletion - Update
Changes in FTSE UK Index Series
24 February 2020
Subject to court sanctioning the scheme of arrangement in relation to the cash offer for Sophos Group (UK, constituent) by Surf Buyer Ltd (non constituent), please see details of affected indexes and effective dates below:

- Sophos Group (UK, BYZFZ91) will be deleted from the FTSE 250 index.

- Morgan Sindall Group (UK, 0808561) will be added to the FTSE 250 Index and removed from the FTSE SmallCap Index.

All changes effective from 27 February 2020.

Full details of index changes are available on the FTSE Russell website.

[woodyjmw] 20/2/2020 12:48

With political parties committed to significant increases in infrastructure spending the future appears rosy for construction companies, the rerating could have further to run, still a modest PE ratio for a growing and well run business.

[fadilz] 20/2/2020 12:22

Some ups and downs, but the share price has seen compound growth of 10% pa over 25 years. with yield 3-4%. Remarkable!

[fadilz] 20/2/2020 12:22

Some ups and downs, but the share price has seen compound growth of 10% pa over 25 years. with yield 3-4%. Remarkable!