Morgan Sindall Share Discussion Threads

[galeforce1] 22/2/2022 11:49

Results this Thursday. Presumably there will be no big surprises as there was a trading update in November. Stockopedia says the estimated net profit for 2021 will be £104m, but is forecasting a dip to £96m in 2022.

MGNS usually has a nice way of surprising to the upside, so I'm hoping to see £110m net profit, more positive news across the order book and a rise in the dividend. MGNS looks very good value at £21-odd. When everyone calms down about Russia annexing the Donbass (3000 miles from Britain and populated by 1.5m Russians who want to be part of Russia), we will hopefully get back towards £25.

It's definitely good news that the fit-out division Overbury is getting contracts like re-fitting the Citi tower in Canary Wharf for £300m.

Potential negatives? Cladding removal costs? Continuing slow action at the Regeneration division? Labour inflation?

[piedro] 27/1/2022 15:15

Overbury gets green light for £300m Citi Tower refurb

[woodyjmw] 18/1/2022 18:23

Will mgns get a positive read across from good results from Henry Boot?

[woodyjmw] 10/1/2022 20:15

Not mentioned as a risk in the last annual report that I can see, would be good to know, but any sector wide levy might affect all?

[galeforce1] 08/1/2022 15:53

Is MGNS likely to be impacted by Gove's scheme to force builders to pick up the tab for removing/replacing cladding?

I doubt that there is much or any exposure, but if there is, it will be in the Regeneration of Muse Development businesses.

[woodyjmw] 07/12/2021 18:33

With Construction PMI remaining strong, could/should be another leg up for MGNS.

[m12rtn] 04/11/2021 17:15

Construction Enquirer headlineConstruction "powers ahead" as supply shortages ease

[galeforce1] 03/11/2021 10:53

It's a good update, but I suppose what worries the analysts is that line "inflation in the supply chain and the availability of materials and labour have remained manageable."

'have remained manageable' is probably update-speak for 'quite difficult' or 'adding significant cost'.

But it's reassuring that despite these pressures the they see a 'full year performance above the previous expectations'. Of course, they will have been deliberately conservative in those previous expectations.

The EV here is under £800m, and profits should be in the range £100-£110m, so it still looks good value to me. There's also the handy dividend at 4%.

[brucie5] 03/11/2021 09:57

Good news. It's been rather a lacklustre performer since I bought in but comes up on so many metrics and screens, which are rather confirmed by this update. In due course would nice to see this reflected in dividend increase?

[master rsi] 03/11/2021 09:11

MGNS 2,265p + 35p +1.57% - Trading Update

Morgan Sindall Group plc ("the Group") today provides an update on current trading and the outlook for the 2021 financial year.

Group performance and outlook
Since the time of the half year results on 4 August 2021, trading has continued to be strong. Inflation in the supply chain and the availability of materials and labour have remained manageable. Based on the performance to date and with good visibility of secured workload through to the end of the year, it is now expected that the Group will deliver a full year performance which is slightly above its previous expectations.

Current trading by division

Trading has remained strong in Construction & Infrastructure; the Construction activities are expected to deliver a full year operating margin of c3%, while the operating margin in the Infrastructure activities is expected to be well in excess of 3.5%. Both activities are benefiting from the continued focus on long-term client relationships, operational delivery and risk management....

[brucie5] 09/9/2021 19:36

Instructive, to a degree. But you'd need to tell me how high the next pivot point.

[piedro] 09/9/2021 16:24

The chart from 2001 ...

[brucie5] 09/9/2021 15:07

20% will do me for starters.
IC is only to supply a narrative. I try to work with screens and charts.

[pastybap] 09/9/2021 15:02

Based on current value and medium term growth, I can see it going much higher before any "halving". But I wouldn't be quoting the IC!!

[brucie5] 09/9/2021 12:29

Piedro, you mean it's going to halve? Gosh.

This was the last IC coverage in August - they've been bullish for some time.



This is particularly encouraging:

"Indeed, profitability and underlying margins across all its divisions increased. The growth of Fit Out, which fits out office space, is particularly pleasing given that it is the highest margin portion of the business. And it's worth noting that its order book was up 42 per cent from the year end to an all-time high of £581m."

But I will ensure a tight stop-loss should, as you suggest, the markets turn on this one.
Wit that in mind, what if anything, are you buying at the moment?

[piedro] 09/9/2021 12:24

Brucie5, good luck.

When the economy turns you should be able to pick up stock at around £12.00

I bought at £4.5, sold at £12.00 and it went to £18.00
Re-bought at £5.50 and am staying put for the moment.

AIMHO.

[brucie5] 09/9/2021 11:01

Just bought some for my otherwise rather value orientated dividend folio. Only 3.3% but this looks like excellent growth and appears on too many screen to ignore. Strong chart too.

[galeforce1] 23/8/2021 14:49

That looks significant. SCAPE is a Public Sector Procurement Authority.

Morgan Sindall is probably the biggest of the chosen contractors and should get a huge amount of work from this over the next 5 or more years.

[piedro] 23/8/2021 11:09

Seven win £14bn next-generation Scape frameworks
Aaron Morby

[arja] 21/8/2021 08:54

I have not checked this one lately but notice chart now looks good and NOR situation ! more in this one it seems and US indices recovery augurs well

[arja] 04/8/2021 16:17

true , even if results match expectations sellers will move in . I notice it is now at low for day and I was WRONG about a recovery happening later in session !

[master rsi] 04/8/2021 11:38

The Results were bullish as is the Forecast, but the market was expecting much more or the rise has been too much for some and aree taking profits after the 20% rise from the lows lately

[arja] 04/8/2021 08:49

always dangerous to hold a stock on results day and usually best to sell or at least partially sell the day or two before and especially after it has had a good run up to results day . Otherwise you are a gambler ! should recover later today as back to chart support level !

[arja] 04/8/2021 07:39

wonder what market will make of results as seem to be lower profit than expected .