Morgan Sindall Share Discussion Threads

[woodyjmw] 05/6/2021 22:17

arja 28 Apr '21 - 14:10 - 830 of 832

See trading update from 22nd April with strong trading and recent construction PMI figures showing strong growth. Only fly in the ointment is increasing material prices which may well eat into margins and will need careful management, hopefully MGNS's management are up to the task, if so there could be a considerable increase in profitability in the next year and the share price could have much further to go.

[piedro] 03/6/2021 09:05

Morgan Sindall wins Manchester hospital £25m enabling works

[piedro] 11/5/2021 11:37

Morgan Sindall to plant 270,000 trees


- Good for them, but no mention of the noble Ash.

[arja] 28/4/2021 14:10

just noticed it has had a 70% increase in last 2 months - so presumably quite vulnerable to massive profit taking unless a very good reason for the increase ?
must keep eye on this one .

[arja] 28/4/2021 14:02

great looking chart and goes ex div tomorrow . Maybe the run up is due to the divi and
might fall more than 40p on thursday or they often do in OZ .

[cashpo1nt] 26/4/2021 18:27

Thanks GF1. Perhaps the most surprising thing is that at my advanced years I still haven't realized that honesty, application and a modicum of common sense are just about all that is required for success in most spheres of life.

[galeforce1] 26/4/2021 07:44

Cash - why is MGNS doing better than rivals like Kier, Carillion, etc?

It’s got to be down to better management, who think longer term and don’t take on low margin work just to fill an order book.

Having a CEO who is personally invested in the business and very experienced is probably a big advantage to MGNS.

At some point soon the company is going to have to look to a successor to JM as CEO. Unless they sell out to a big French or Spanish builder of course.

[cashpo1nt] 25/4/2021 10:59

2 Questions: 1. How does this company manage to perform brilliantly in most of the areas where others (eg kier) really struggle?
2.Why does such a lovely share generate so little interest on this BB.?

[galeforce1] 23/4/2021 07:12

That’s a big share sale by John Morgan yesterday. Approximately 15% of his holding. Sold at just over £20.

His policy seems to be a gradual ‘drawdown̵7; of capital. He will still have about 7.5% after yesterday’s sale.

I suppose one of the advantages of being a listed business is that it’s possible to do this. You don’t have to sell the whole business to extract some capital.

MGNS hit a market cap of £1bn yesterday, which seems fully justified by the trading statement.

[master rsi] 22/4/2021 09:41

From the Opening Market report...

In the FTSE 250, Morgan Sindall was the standout performer, up 11%. The construction company said that, since its annual results in February, all divisions have made further positive operational and strategic progress, with total secured workload of GBP8.1 billion as of March 31.

Morgan Sindall said it is now on track to deliver a full-year performance which is "significantly ahead" of its previous expectations.

[master rsi] 22/4/2021 09:23

2100p +232p / FY performance tracking 'significantly ahead' of expectations

Construction and regeneration group Morgan Sindall said on Thursday that it was now on track to deliver a full-year performance "significantly ahead" of previous expectations.

Since the release of its full-year results back in February, Morgan Sindall said all divisions had made "further positive operational and strategic progress", with momentum across the group also continuing to increase.

Morgan Sindall's total secured workload for the group as of 31 March was £8.1bn, up 8% from the same time a year earlier, with its construction secured order book up 15% at £4.0bn and its regeneration secured order book up 1% at £4.1bn.

"On the basis of the performance to date, the group's operational delivery capabilities and the current visibility of future workload for delivery in the remainder of the year, the group is now on track to deliver a full-year performance which is significantly ahead of its previous expectations," said MS.

The FTSE 250-listed firm also stated its "strong cash position" had further improved and was now expected that average daily net cash for the full year would be in excess of £180.0m.

[babbler] 22/4/2021 08:23

Double the rise you expected. Nicely done.

[galeforce1] 22/4/2021 07:32

Another super-positive trading update. We might see the share price rise 5% on this, despite the strong run recently.

Performance 'significatly ahead' of previous expectations.

They were previously hoping to equal the 2019 results (profit £93m). It looks as though they will go comfortably past that.

Current Mcap £865m, EV £585m. I think that quite soon we will see MCap £1bn, EV c. £700m

Well done MGNS. A very well-run business.

[piedro] 22/3/2021 11:13

Morgan Sindall scoops £65m Carlisle Southern Link
Aaron Morby
4 hours ago

[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..