Morgan Sindall Share Discussion Threads

[bluecash] 27/2/2021 19:43

Galeforce, I agree. P/e looks very low and dividend is very respectable at this price.

[galeforce1] 25/2/2021 10:09

These look like nice results, particularly the cash generation. The guidance seems to be for profits of £100m+ in 2021. They are predicting a better year than 2019, when profits before tax were £93m.

I haven't had time to go through the results in detail, but I'm pleased to see that all the divisions apart from Regeneration seem to be thriving. Fit-Out seems to have had a good year, which is a nice surprise.

If they have £183m approx in average daily net cash, that takes the EV, even after the rise this morning, to about £550m. That is still very reasonable for such a solid and profitable business. In fact too cheap!

Within 12 months, I can see the divi going to 80p and the market cap going to £1bn (which would be a share price of £22). EV would be around £750m, which will still look reasonable.

[nickzs] 25/2/2021 10:07

Pretty pleased with the results and share price activity this morning myself.

[galeforce1] 24/2/2021 10:28

Showing signs of life! Hopefully anticipating good results and update tmrw.

[jadeticl3] 20/2/2021 13:31

Looking forward to results!

[galeforce1] 19/2/2021 16:01

It will be interesting to see the full year results next Thursday, but since we had a trading update in November I suppose there aren't that many 'unknowns'.

I'll be interested to hear how the Fit-Out division is going. Is the general move by companies to reduce office space enlarging or decreasing the order book for MGNS? I reckon it will be surprisingly strong because so much office space will have to be re-configured.

House building, Regeneration and Infrastructure should all be strong.

I still think this is one of the best value stocks out there, with a good dividend, a very strong balance sheet, a big order book and great management. I've topped up today on the slightly weaker share price.

[quickquid] 31/12/2020 16:54

Hope everyone here has had a great Christmas.

Looking forward to the new year. Plenty of work winning opportunity.

Should see a good rise.

[quickquid] 10/12/2020 15:25

Piedro, what's your source for those graphs?

[piedro] 08/12/2020 22:09

The meaning is in comparing the results each month ...



DYOR

[imastu pidgitaswell] 08/12/2020 15:48

He means the league table of gross value contract wins, by company. So yes, they won plenty.

Fairly meaningless, imho, but better to be at the top as long as you are not lowballing. Which this lot aren't but KIE (no 1) might (not) be...


Interestingly, and of benefit to the sector, is a government plan to avoid up-front lowballing bids winning tenders. Anything that avoids more insolvencies in the sector is good, and it is clearly an issue taht the government is finally aware of, after too many years of it and resulting insolvencies..

[saucepan] 08/12/2020 15:37

QuickQuid: can you kindly clarify your post No. 807, please.

When you say MGNS came "second place", do you mean it did not win the contracts in question?

[quickquid] 08/12/2020 14:11

Second place on contract wins for November and YTD. Pretty good going.

[quickquid] 03/12/2020 10:11

£18M schools contract in the midlands.

[quickquid] 02/12/2020 16:57

Liverpool film studio to commence.

Erik, any news source on taking all the South East schools?

[quickquid] 30/11/2020 10:27

£26m leisure center win.

[quickquid] 26/11/2020 10:21

£36m Aylesbury School contract win. £9m Hampshire school. On the West Midlands framework.

Going really well on work winning.

[quickquid] 24/11/2020 23:09

Very good, general trend is overall upwards. Glad I bought extra at 1150.

From my understanding, there will be a few accelerated DoE contracts in order to build back. MGNS obviously being a front runner.

[investing2retire] 23/11/2020 15:23

nice rise today off the back of the vaccine news today. hopefully this will keep its momentum and back to sensible levels for this share

[essentialinvestor] 12/11/2020 20:01

Up very heavily over two weeks.

[galeforce1] 12/11/2020 19:56

MGNS went ex-div today, which accounts for some of the fall. But we fell about a £1 and the interim divi is 21p!

[quickquid] 09/11/2020 12:11

Erik, where did you get that information from?

[eriktherock] 09/11/2020 11:28

Could it be that MGNS will replace KIE on DfE Regional Frameworks ?

[imastu pidgitaswell] 09/11/2020 08:19

Morgan Sindall’s house is built on reliable finances
Sabah Meddings
Sunday November 08 2020, 12.01am, The Sunday Times


David Cameron did it. Nick Clegg did it. Even Nicola Sturgeon sometimes does it. Boris Johnson is likely to do a lot of it next year. Yes, 2021 will be a vintage year for politicians wearing hard hats and pointing at things.

As Britain begins the painful task of rebuilding its economy, there will be opportunities for those in construction with a shovel or two at the ready for well-timed media opportunities.

Morgan Sindall, still led by co-founder John Morgan, operates in sectors likely to benefit from public money. It is a diversified group with divisions including housebuilding, infrastructure and office fit-outs.


Morgan Sindall has kept itself squeaky clean in terms of taxpayer support: this month, it said it would repay £9.5m of furlough cash, and it has also reimbursed junior staff for salary sacrifices made during the crisis. At the same time, it said it would resume final dividend payments and declared an interim dividend of 21p, in line with last year’s.

Morgan Sindall’s latest trading statement indicated that business had improved between August and October, prompting it to predict that full-year pre-tax profit would be slightly above its £50m-£60m range. The “secured workload” at the end of the third quarter was £7.9bn, including projects such as the smart motorway programme. Other projects include the Thames Tideway tunnel and the Sellafield nuclear site.


The government has said that construction can continue throughout this second lockdown, and in the medium term, housebuilders will benefit from the Help to Buy scheme until 2023.

Morgan Sindall’s average daily net cash, a key metric in the sector, is expected to be £150m for the full year — ahead of previous guidance — and the group has a new £150m revolving credit facility until 2023, with an option to extend. This healthy financial position will allow it to be selective on the contracts it pursues, protecting margins.

The shares have been volatile over the past year. They soared after the Conservative election victory in December, but plunged after lockdown closed sites in the spring. Morgan Sindall is trading at 37.5% less than its February peak of £19.70, with the stock closing on Friday at £12.30, valuing the company at £567.7m. Analysts’ price targets vary wildly — Panmure Gordon, the firm’s broker, has a £22.30 target on the stock, while Peel Hunt has £15 — but are well above current trading. There is reason to be confident: Morgan Sindall has weathered the Covid-19 crisis and is well placed to make the most of any recovery. Buy.


:-)

[galeforce1] 09/11/2020 08:11

Nice write-up in the Business section of the Sunday Times yesterday.