Morgan Sindall Share Discussion Threads

[master rsi] 05/8/2020 22:24

1,222p +182p +17.50%

Liberum upgrades Morgan Sindall to 'buy'

Analysts at Liberum upgraded construction and regeneration firm Morgan Sindall from 'hold' to 'buy' on Wednesday following some detailed guidance from the group.

Liberum said MS' first-half results were "weak as expected" with a 57% decline in fully-diluted earnings per share and weakness across the board.

However, with management giving detailed guidance on the group's outlook, the analysts increase their 2020 EPS estimates by 29% despite an impending £9.3m furlough repayment. They did leave it unchanged in 2021 though given "macro uncertainty and high private-sector exposure".

Liberum also increased its 2020 average daily net cash estimate significantly from £23m to £110m and upgraded its target price on Morgan Sindall from 1,225p to 1,300p.

"Total liquidity is more than ample and, although Morgan Sindall is eligible for the CCFF, it has not needed to use the facility," said the analysts.

"Total liquidity is more than ample and, although Morgan Sindall is eligible for the CCFF, it has not needed to use the facility," said the analysts.

[galeforce1] 05/8/2020 19:10

chris - I disagree. Virtue signalling is not always a bad idea, particularly from a company like Morgan Sindall that gets something like 80% of its revenue from govt. funded projects. If the Treasury is impressed that may do the company a favour in the future.

Returning the furlough cash projects confidence by the BoD in the future prospects for the company, and it clears the decks for the resumption of dividends next year.

Also, it's difficult to justify keeping furlough cash (they don't say how much, but let's say £10m?) when you have £140m cash on the balance sheet.

It must have been quite a difficult decision, because they have voluntarily handed shareholders cash back to the govt. But if I'd been on the BoD I would have probably have voted to do the same.

[chris79] 05/8/2020 17:47

Returning the furlough cash is pointless virtue signalling. Rightly or wrongly the government limited the extent employees could work and offered money. Furlough is basically a negative tax, companies can't choose to not pay a tax they don't like so shouldn't turn money down the other way. Fair enough companies giving back the money for higher sales and brownie points with customers but that clearly won't be the case for MS.

[essentialinvestor] 05/8/2020 16:43

Lovely day, had about given up on this. Sold what I held, however if
given the chance will add on a bad day.

[rimau1] 05/8/2020 11:13

I always struggle with the margins at Morgan and tend to stick to Renew for an infrastructure play. But just my view. Quality infrastructure plays will do well with the upcoming fiscal stimulus

[galeforce1] 05/8/2020 07:23

Pleasantly surprised here. Better than I'd hoped.

The decision to return all the furlough cash sends a strong signal of confidence about the future. I'm sure it's the right thing to do, even if they are voluntarily giving away shareholder's money.

[essentialinvestor] 04/8/2020 22:51

Net cash outlook and any comment on margins are the key.

[goldry] 04/8/2020 22:45

I agree the order book should look ok. I'm not sure they'll be in a position to pay a dividend and I think I'd rather they kept the cash until we're out of the COVID woods.

[smunro81] 04/8/2020 22:19

I think the order book will be positive and I think they might offer a small dividend. Got loads of cash and I’ll be disappointed if a fraction of it doesn’t come back to shareholders.

[valuehunter1] 31/7/2020 11:27

I would expect the margin erosion will have been priced in given the stock has fallen from £19 to £10.50. We shall see but Im optimistic this decent outfit will be back on track v soon.

[essentialinvestor] 29/7/2020 18:42

We find out next Weds on the H1.

[essentialinvestor] 29/7/2020 18:32

They are limited risk once the sites remain open.

How much have the COVID lockdowns cost Morgan Sindall on margin erosion?.

Steve Morgan timed his share sales very nicely!.

[galeforce1] 27/7/2020 09:05

The good thing about these regeneration projects is that there is very limited risk to MGNS.

[master rsi] 27/7/2020 08:52

Morgan Sindall to commence work on New Victoria scheme

Construction and regeneration group Morgan Sindall reached an agreement on Monday to commence work on the first phase of its £185m New Victoria scheme in Manchester city centre.

Adjacent to Manchester Victoria train station, the first phase of Morgan Sindall's scheme was for 450,000 square feet of residential development, with construction expected to complete in 2023.

The FTSE 250-listed firm also added that proposals were underway to bring forward the second phase of the wider New Victoria scheme, developed in partnership with Network Rail and with support from Manchester City Council and Homes England.

Chief executive John Morgan said: "We are pleased to have agreed our second major forward funded deal in recent weeks, which further reinforces our regeneration strategy.

"We look forward to working with our partners to deliver a transformational scheme on an underutilised site in the heart of Manchester's city centre".
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Share price spread 1088 v 1120p +26p

[essentialinvestor] 25/7/2020 12:52

The primary risk is COVID cases increasing rapidly again in to autumn/winter,
which results in further potential disruption. Potentially very messy until we have a vaccine.

[galeforce1] 24/7/2020 09:13

Half year results and trading update on Weds August 5th will be interesting.

I'm sure there will have been quite a big loss over the period, but at the same time I think the outlook is going to very positive. I reckon we will see optimism re. current trading and perhaps good numbers on the order book/pipeline.

MGNS did not put its staff on furlough and so are morally in a strong position to re-start dividends as soon as finances permit, which I reckon will be from January 2021.

At under £11.00 they look reasonably priced and I'm going to start accumulating.

[essentialinvestor] 22/7/2020 12:47

Added a small amount.

[essentialinvestor] 20/7/2020 14:36

Possible retest of the March low, around 1032...?

[essentialinvestor] 17/7/2020 11:49

Bought a very small amount, unsure on this one, can move 5-10% in either direction
very quickly.

[jadeticl3] 14/7/2020 12:49

I am not sure whether this news and the sharp fall in MGNS share price are connected! Is this statement (in the above posting) good news or not?

[master rsi] 14/7/2020 11:37

Morgan Sindall agrees forward funding for Lewisham Gateway scheme

Construction and regeneration company Morgan Sindall said on Tuesday that its urban regeneration division has agreed a £252m forward funding deal with Get Living to deliver the final phase of its Lewisham Gateway scheme.

Once complete, the scheme will be operated by Get Living and provide 649 homes for rent, around 25,000 sq ft of retail space, 15,000 sq ft of food and beverage space, a gym, 10,000 sq ft of offices and Lewisham's first major multiplex cinema, which has been pre-let.

The scheme is expected to complete in 2023.

The wider development is a joint project with the London Borough of Lewisham, the Mayor of London and Transport for London, supported by Homes England.

Chief executive John Morgan said: "This deal reinforces our regeneration strategy and is testament to our expertise in this area. We look forward to working in partnership with Get Living to deliver a transformational scheme to the local community."

[investing2retire] 08/6/2020 10:16

NT bought in targeting 1500p and kier is up 20% today.confidence coming back into the sector

[essentialinvestor] 01/6/2020 14:42

Mr Morgan has sold twice over the last year, one sale late last year.

Is there is any rush to buy here?.