We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register to chat with like-minded investors on our interactive forums.
| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| Morgan Sindall Group Plc | LSE:MGNS | London | Ordinary Share | GB0008085614 | ORD 5P |
| Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 20.00 | 0.86% | 2,355.00 | 2,345.00 | 2,355.00 | 2,365.00 | 2,315.00 | 2,345.00 | 76,406 | 16:29:47 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| Gen Contractor-nonres Bldgs | 4.12B | 117.7M | 2.4853 | 9.48 | 1.12B |
From May 2019 to May 2024
TIDMMGNS
RNS Number : 6081T
Morgan Sindall Group PLC
21 March 2019
Morgan Sindall Group plc ('the Company')
Legal Entity Identifier (LEI) number: 2138008339ULDGZRB345
Annual Financial Report
21 March 2019
Further to the release of the Company's Preliminary Results announcement on 21 February 2019, the Company announces that it has today published and issued to shareholders the 2018 Annual Report and Accounts ('Annual Report'), Notice of Annual General Meeting 2019 and the Form of Proxy. The following documents can be downloaded from the Company's website at www.morgansindall.com:
-- 2018 Annual Report -- Notice of Annual General Meeting 2019
A copy of each document listed above has been submitted to the Financial Conduct Authority's national storage mechanism ('NSM') and will shortly be available via the NSM website at www.morningstar.co.uk/uk/NSM.
The Company will hold its Annual General Meeting at 10.00am on Wednesday 8 May 2019 at the offices of Jefferies International Limited, Vintners Place, 68 Upper Thames Street, London EC4V 3BJ.
In accordance with the requirements of Rules 4.1 and 6.3.5 of the Disclosure Guidance and Transparency Rules, a description of the principal risks and uncertainties affecting the Group is set out in Appendix 1 to this announcement. The Company's Preliminary Results announcement released on 21 February 2019 contained all other information required by DTR 6.3.5.
ENQUIRIES:
Morgan Sindall Group plc Tel: 020 7307 9200
Clare Sheridan, Company Secretary
Appendix 1
The Group's risk profile continues to be supported by a strong balance sheet and order book, and a continued focus on contract selectivity. There have been no noticeable Brexit impacts, but we remain vigilant.
Our approach
Risk is inherent in our business and cannot be completely eliminated if we are to achieve growth. Our risk governance model ensures that our principal risks and the controls implemented throughout the Group are under regular review at all levels
Group Board
The Board is responsible for setting the Group's risk appetite and for ongoing risk management, including assessing the principal risks that threaten our strategy and performance.
Hot Features
Premium
Audit committee
The audit committee assists the Board in monitoring risk management and
internal control, and formally reviews the Group and divisional risk
registers on behalf of the Board.
Divisional boards Risk committee
------------------------------------------------------
Each division identifies the risks Our risk committee consists of heads
facing its business and takes measures of key Group functions, including
to mitigate the impacts. Senior managers legal, company secretarial, IT, finance,
take ownership of specific risks internal audit, tax, treasury and
and ensure that tolerance levels commercial. The committee identifies
are not exceeded. risks for entering in the Group risk
register. It also reviews the Group
and divisional risk registers before
they are presented to the Board and
audit committee.
Risk reviews Strategic planning Delegated authorities Divisional Reporting
----------------------- ------------------------- -------------------------
Twice a year each Risk management Our finance director The divisional
division carries is part of our and Group head risk registers
out a detailed business planning of audit and assurance record the activities
risk review, recording process. Each year have produced a needed to manage
significant matters objectives and formal document each risk, with
in its risk register. strategies are which delegates mitigating activities
set that align approval for material embedded in day-to-day
Each risk is evaluated, with the risk appetite decisions to appropriate operations for
both before and defined by the levels of management. which every employee
after the effect Board. Such decisions has
of mitigation, include project some responsibility.
on its likelihood selection, tender Rigorous reporting
of occurrence and pricing, and capital procedures are
severity of impact requirements. Board in
on strategy. The approval is required place to monitor
Group head of audit before undertaking significant risks
and assurance follows large, complex throughout the
the same process projects. The approval divisions and ensure
for identifying system is regularly they are communicated
and reviewing Group reviewed. to the Group head
risks, conferring of audit and assurance.
with
the risk committee.
----------------------- ------------------------- -------------------------
Internal audit
The Group head of audit and assurance reviews and collates the divisional
risk registers and draws from them when compiling the Group risk register.
An annual review across the Group is undertaken, focusing on significant
projects and trends, and areas of concern.
Overview of the Group's risk profile
During 2018 the Board reviewed the Group's risk appetite and no significant changes were identified. The ongoing negotiations over the UK's exit from the EU continue to generate uncertainty and we are keeping a close watch on developments. However, the economy has continued to perform well in the reporting period and this is reflected in our trading position. We will adjust our strategy in response to any clear indicators, but are reassured that the majority of our regeneration schemes and a sizeable portion of our construction order book and pipeline are supported by public sector or regulated clients, via frameworks and joint venture arrangements secured over the medium to longer term.
Our diversity of offering through construction and regeneration protects the business from cyclical changes in individual markets. Government commitments continue to support our business model and strategy, particularly in housebuilding and regeneration - areas expected to be a primary growth driver - and in infrastructure, where our work in the public and regulated sectors has longer-term visibility.
Based on current trading patterns, a strong balance sheet, our high-quality secured order book and visible pipeline of opportunities, our outlook for 2019 and beyond looks positive. All businesses remain focused on long-term partnerships, our favoured route to market with more predictable outcomes. Our regeneration activities are mostly non-speculative, land option style arrangements, with efficient capital structures, all underpinned by a long-term visible pipeline.
Residential schemes at our price point have continued to be in demand during EU negotiations, meeting our expectations across a broad UK portfolio. With government support for housing, we are confident that the homes we build will continue to be in demand and affordable. Should the market change, the majority of our schemes are subject to economic viability conditions: future phases can be remodelled or deferred, which together with robust risk and capital controls would help mitigate negative fluctuations. Construction's long-term focus on selectivity is reflected in its outturn margin, cash and future order book. Fit Out, while more susceptible to GDP fluctuations, has good visibility of its order book in the earlier part of 2019.
In terms of resourcing our medium- and long-term plans, we have committed banking facilities until 2022, a strong cash profile and robust capital controls in place. Voluntary employee turnover is at optimum levels in most businesses and where we are recruiting we have witnessed a healthy interest in the new positions we require to help us achieve our strategic objectives.
Principal risks
The principal risks to the business are set out on the following pages, as they relate to our Group strategic objectives. The list is not exhaustive but includes those risks currently considered most significant in terms of potential impact, together with mitigating actions being taken.
The risks have been extensively reviewed but have not changed significantly in the reporting period. Any changes in severity and likelihood of impacts compared to 2017 have been indicated, and signify the Board's opinion of pre-mitigation risk movement.
Win in targeted markets
Global and UK economic conditions could potentially impact our longer-term strategy in our markets.
Risk and Risk change in reporting period Mitigating activities
potential
impact
Changes in Slight increase
the * A no-deal Brexit scenario could influence consumer * The government and cross-party groups remain
economy confidence, which in turn could affect the wider committed to investment in areas that complement our
There could housing market and lead to lower sales volumes. EU strategy, including housing and infrastructure. This
be fewer or exit negotiations continue to have limited impact in supports our business model, which is designed to
less our markets, but longer-term effects remain difficult provide a mix of earnings across different market
profitable to predict and could affect investor and consumer cycles.
opportunities confidence.
in our chosen
markets. * Maintaining a high profile and competency in sectors
Allocating * Our business operates mainly in the UK; therefore, we identified for investment, such as infrastructure,
resources and have not been required to consider any changes to our housing and urban regeneration.
capital to model. Specific risks include: the potential for
declining increased material costs as a result of exchange
markets or differences arising from materials imported from EU * Monitoring changes in the economy, which helps us
less countries; potential delays to construction detect shifts in spending and adapt our strategy if
attractive programmes in importing materials; and potential necessary.
opportunities skills deficiencies arising from difficulties in
would reduce obtaining EU workers within the supply chain. We have
our reviewed these potential impacts and consider that we * Strategic focus on market spread, geographical
profitability have sufficient mitigations in place via contract capability and diversification to protect against the
and cash terms or allowances that offset increased costs. cyclical effect of individual markets.
generation.
* The industry relies on a pool of EU labour to sustain * Business planning that focuses on markets and
construction output. To date we have not experienced opportunities consistent with our risk appetite.
any major issues, and consider this to be a more
long-term challenge.
* High proportion of order book secured with public
sector and regulated entities, via long-term
* Opportunities continue to flow in all our markets and agreements and with a healthy level of demand.
there is high demand for our development and
regeneration schemes (typically long term in nature)
which continue to benefit from historical investment. * Construction and regeneration divisions working
together, adding value for clients and offering a
scale of service that enables us to compete in areas
* Competition in construction remains high against a with higher barriers to entry.
backdrop of lower growth and rising inflation.
However, a large proportion of our work and forward
order book continues to be secured via frameworks * Regular monitoring and reporting of financial
which typically includes preferential terms. performance, work won, prospects and pipeline of
opportunities.
* Elsewhere our strategy continues to be very selective
and procurement routes, margins, contract terms and
order book remain favourable.
* The continued scrutiny of UK construction balance
sheets is a differentiator for us and continues to
underpin our position in our sector.
----------------------------------------------------------- -----------------------------------------------------------
Risk and Risk change in reporting period Mitigating activities
potential
impact
Exposure to Slight increase
UK housing * Despite Brexit, there continues to be clear * Monitoring key UK statistics, including unemployment
market government and cross-party support and demand for new ,
The UK housing, which supports our business model and market lending and affordability.
housing positioning.
sector is
strongly * A residential portfolio that targets and supports
influenced by * Our regeneration portfolio is geared to offset strategic partnerships and the government's demand
government impacts if they arise and/or share risk, but given for affordable housing supply.
stimulus our price point and demographics, we believe that our
and consumer services will still be in demand despite market
confidence. fluctuations. * Rigorous three-stage approval process before
committing to development schemes.
If mortgage
availability * Sales volumes, pace and inflation across the regions
and have held up during the year in both the investor and * A constrained land bank, preferring and targeting
affordability private markets. There has been some plateauing in option-type agreements with owners, that limit and/o
are reduced the London market but with signs of stabilisation. r
this could defer long-term exposure and boost return on capital
make employed.
existing * Our residential portfolio is geographically spread,
schemes affording protection against any regional variation.
difficult to * Committing only to viable development schemes,
sell and allowing us to maximise our residential portfolio
future * We are well positioned to support current and future while responding quickly to any market changes.
developments affordable and regeneration housing, with high demand
unviable, across our existing property portfolio.
reducing * Largely non-speculative, risk-share development
profitability vehicles, subject to viability conditions that
and tying up * There is high demand for housing on our regeneration minimise any negative impact from market
capital. schemes, and we work closely with local authorities fluctuations.
to provide viable development.
* Regeneration schemes that typically include a mix of
assets, such as residential, leisure, hotels,
commercial and light industrial, providing some
flexibility through economic cycles.
* High majority of schemes in partnership with the
public sector and in regenerative areas that attract
government funding and support.
* Targeting forward-selling and funded sections of
large-scale residential schemes to institutional
investors.
* Regular forecasting and monitoring of development
pipeline and order book.
* Close and trusted working relationships with
government agents such as Homes England.
----------------------------------------------------------- ----------------------------------------------------------
Risk and Risk change in reporting period Mitigating activities
potential
impact
Poor contract No change
selection * The majority of our regeneration schemes and a high * Clear selectivity, strategy and business plan to
In a volatile proportion of construction activity (order book and target optimal markets, sectors, clients and projects
market where pipeline) is supported by public sector and regulated ,
competition clients via framework and joint venture style which have proven to have delivered favourable
is high, a arrangements, which we believe are less likely to be outcomes.
division affected in the short or medium term by any Brexit
might accept economic impacts.
a contract * A strong order book and cash position that allows us
outside to remain selective when bidding for contracts.
its core * Fit Out is the most vulnerable to any downturn in the
competencies office subsector but currently has good visibility
or for which and order book into 2019 with potential effects * Divisions selecting projects according to pre-agreed
it has already reflected in current strategy and types of work, contract size and risk profile.
insufficient forecasting.
resources.
* A multi-stage process of bid approval, including
Failure to * Our forward order book continues to provide comfort tender review boards, risk-profiling and sign off by
understand with a high proportion being secured in limited appropriate levels of management.
the project competition via favourable procurement routes. It
risks may lead maintains a high proportion of public sector and
to poor framework clients with typically healthier risk * Staff planning and profiling to ensure appropriate
delivery profiles. levels of qualified resource for future work.
and ultimately
result in
reputational * An enhanced understanding of medium-term pipeline * Initiatives to select supply chain partners who match
damage and quality, assisted by insights generated from new our expectations in terms of quality, sustainability
loss analytical software, enables us to predict trends and availability.
of more accurately and adjust our strategy in response.
opportunities.
* Regular reporting on sales, pipeline and order book,
* An increasing proportion of construction work is using customer relationship management software.
being secured via sister company regeneration schemes
,
where expertise provided at an early stage can have * A deliberately large proportion of projects conducted
the greatest influence on the likelihood of project via framework or joint venture arrangements with
success. repeat clients who share our philosophy and values,
making predictable outcomes more likely.
* In particular, a significant proportion of our larger
projects continuing to be secured with long-term
clients with whom we have good relationships and
sensible terms.
----------------------------------------------------------- -----------------------------------------------------------
Risk and Risk change in reporting Mitigating activities
potential period
impact
Health, No change
safety * The Group health and safety forum has focused on * Board level HSE committee focused on health and
and mental health; occupational health; human factors in safety culture to drive better behaviour and
environment site safety; supply chain engagement; behavioural performance.
(HSE) safety; and shared learning.
Health and
safety * Quarterly meetings of the Group health and safety
will always * Fit Out successfully trialled new behavioural safety forum where representatives from all divisions
feature initiatives that significantly reduced health and continue to share best practice and exchange
significantly safety risks, such as working at height and material information on emerging risks.
in the risk movement, and is looking to widen their use.
profile
of a * Individuals in each division, and on the Board, with
construction * Construction & Infrastructure released an online MIND specific responsibility for HSE matters.
business. We survey to assess the mental health and wellbeing of
carry out a employees. The results helped form the division's
significant 2018 mental health strategy and have been shared with * Communication of each division's HSE policy to all
portion of other divisions. employees and senior managers appointed to ensure
our they are implemented.
work in
public * Health and safety leadership team meetings were held
areas and during the year to discuss safety matters and trends * Established safety systems, site visits, monitoring
complex impacting the business. The meetings were attended by and reporting procedures including near-miss and
environments, divisional managing directors and health and safety potential hazard reporting. Fit Out and Construction
requiring directors. & Infrastructure use a health and safety app to
strict improve safety on sites.
observation
of * We have continued to focus on managing HSE issues to
Health and the standards required to protect individuals, the * Investigations and root cause analysis of accidents
Safety community and the environment. We reduced our carbon or incidents and near misses. Information is shared
Executive intensity by 3% in 2018. across the Group.
standards.
In terms of
environmental * New system implemented to monitor high potential
matters, incidents.
our greatest
impacts would
be in areas * Regular HSE training that includes behavioural change,
of housekeeping on site and leadership engagement in
energy use driving site standards.
and
waste
generated * Major incident management plans and business
by our continuity plans, periodically reviewed and tested.
activities.
Incidents * HSE report to the Board each month, HSE audits on
that projects and training schedules and incident
cause harm to investigation reports if necessary.
an individual
or the
community * Maintaining our A- position in the CDP (formerly the
could result Carbon Disclosure Project) index which places us in
in legal the CDP's leadership band. We continue to target
action, improvements in carbon emissions and waste
fines, costs production.
and insurance
claims as
well
as project
delays
and damage to
reputation.
Poor
HSE
performance
could also
affect
our ability
to
secure future
work and
achieve
targets.
----------------------------------------------------------- ------------------------------------------------------------
Develop and retain talented people
We recognise that talented, motivated people improve our performance and contribute to growth. Employee surveys show that people are happy with their places of work, culture and leadership styles.
Risk and Risk change in reporting period Mitigating activities
potential
impact
Failure to Slight decrease
attract * Our current success is helping us attract and retain * Annual appraisals providing two-way feedback on
and retain people, reflected in falling voluntary employee performance.
talented turnover rates and high levels of applicants.
people
Talented * Training and development plans to build skills and
people * In divisions whose voluntary employee turnover is experience.
are needed higher, improvements continue to be made to the
to provide working environment and investment made in technology
excellence and leadership training. * Attractive remuneration packages benchmarked where
in project possible.
delivery and
customer * Recent divisional surveys have provided positive
service. reinforcement of our efforts to improve employee * Industry-leading working environments, technology
satisfaction. tools and software to enrich people's working
Skills experience.
shortages
in the * Our investment in graduate, trainee and
construction apprenticeship schemes is well established, with * Giving people empowerment and responsibility together
industry participants progressing to more senior positions. with clear leadership and support.
remain an
issue
for the * Our leadership development programme continues to be * Monitoring future skills requirements and embedding
foreseeable well received. succession plans.
future.
* Construction & Infrastructure won the 'Inspiring * Debriefs with leavers and joiners to understand the
Change in the Workplace' award presented by the Civil reasons for their decision.
Engineering Contractors Association, for its drive to
promote an inclusive culture.
* Divisional 'people boards' that meet twice a year to
review talent in the business.
* Initiatives to help improve employees' wellbeing
include financial education and digital GP
programmes. * Employee engagement surveys.
* We partner with organisations such as Women into * Monthly HR reports to the Board including a report on
Construction and the 5% Club to promote diversity in leavers and joiners.
our workforce.
* Monitoring recruitment.
----------------------------------------------------------- -----------------------------------------------------------
Disciplined use of capital
Our long-term success depends not only on our disciplined use of capital but also the liquidity of our clients, partners and suppliers, which could be affected by overtrading in an increasingly uncertain market.
Risk and Risk change in reporting period Mitigating activities
potential
impact
Insolvency of Slight increase
key client, * A high proportion of our current order book is public * A business strategy focused on the public sector and
subcontractor, sector focused. With commercial clients we obtain, commercial clients in sound market sectors.
joint venture where necessary, relevant securities in the form of
(JV) partner guarantees, bonds, escrow and/or favourable payment
or terms. * Rigorous due diligence and credit checks on clients,
supplier. partners and suppliers.
An insolvency
could disrupt * Given recent sector-related issues, some supply chain
project works, partners could overstretch their finances, leading to * Formal, staged approval process before entering into
cause delay underperformance or insolvency. contracts, supported by tender review boards.
and
incur the
costs * We do not employ any form of debtor finance when * Formal JV selection due diligence papers and approval
of finding a paying our supply chain. With this and our strong at Group executive director level.
replacement, balance sheet, our supply chain partners regard us as
resulting in dependable in an otherwise unsettled sector.
bad * JV agreements that contain protection in the event of
debt and default by one of the partners.
significant
financial
loss. * Working with preferred or approved suppliers wherever
There is a possible, which aids visibility of both financial and
risk workload commitments.
that credit
checks
undertaken in * Regular meetings with key supply chain members to
the past may exchange feedback and maintain dialogue, resulting in
no meaningful relationships and a greater understanding
longer be of their business.
valid.
* Monitoring supply chain utilisation to ensure we do
not overstress either their finances or operational
resource.
* Monitoring work in progress (uninvoiced income),
debts and retentions.
----------------------------------------------------------- -----------------------------------------------------------
Risk and Risk change in reporting period Mitigating activities
potential
impact
Inadequate No change
funding * Our average net daily cash continues to be healthy * Medium-term committed banking facilities to 2022,
A lack of and clearly indicates the cash-backed nature of the which together with our strong cash position provide
liquidity business. significant headroom.
could impact
our
ability to * Our balance sheet provides certainty for our clients * A Group-led, disciplined allocation process for
continue and supply chain in an increasingly uncertain market significant project-related capital, which considers
to trade or . future requirements and return on investment.
restrict
our ability
to * The strength of our balance sheet provides the * Daily monitoring of cash levels and regular
achieve opportunity to explore further investment in forecasting of future cash balances and facility
market regeneration schemes and continue to be selective in headroom.
growth or construction.
invest
in * Regular stress-testing of long-term cash forecasts.
regeneration
schemes.
---------------------------------------------------------- ----------------------------------------------------------
Risk and Risk change in reporting period Mitigating activities
potential
impact
Mismanagement No change
of working * Overall working capital continues to improve as a * Monitoring and management of working capital with
capital result of the phasing of scheme starts and acute focus on any overdue work in progress, debtor
Poor completions in regeneration, plus the continuing s
management benefits from positive cash generation in or retentions.
of working construction.
capital
leads * Reinforcing a culture in the bidding and project
to * Our cash position is not supported by any form of teams of focusing on generating positive cash
insufficient supply chain debtor finance and gives a clear outcomes.
liquidity and indication of our health.
funding
problems. * Daily monitoring of cash levels and weekly cash
* Cash management maintains its positive momentum in forecast reports.
construction due to a combination of improved returns,
and cash optimisation and conversion.
* Cash profiling of key construction opportunities at
an early stage to ensure they meet expectations.
* Our average net daily cash for the period underlines
our disciplined working capital management, but there
are still areas for improvement that we are working * Efficient management of capital on regeneration
on. schemes, such as phased scheme delivery,
institutional and government funding solutions, and
forward funding where possible.
------------------------------------------------------------ ---------------------------------------------------------
Maximise efficiency of resources
Contract terms need to reflect risks arising from the nature and duration of the works. Projects must be properly resourced to ensure successful delivery for clients.
Risk and Risk change in reporting period Mitigating activities
potential
impact
Mispricing a No change
contract * Contract procurement routes and terms have remained * A well-established bidding process with experienced
If a favourable, as indicated by our outturn margins and estimating teams.
contract quality of forward order book.
is
incorrectly * Robust review of pipeline at key stages, with
costed this * Our continued focus on key sectors means we have rigorous due diligence and risk assessment, and
could relevant experience when pricing a project and are senior level approval.
lead to a less likely to misprice than if entering new markets
reduction or bidding bespoke procurement products.
in gross * Our order book quality and strong cash position mean
margin. we can remain selective in our bidding.
It might * We have maintained our focus on selecting projects
also that are right for the business and match our risk
damage the appetite, thus offering a higher probability of * A provision, where appropriate, for increases in
relationship success. costs that hedges against supply chain costs exposed
with the to fluctuations in exchange rates or inflation.
client
and supply * We continue to secure projects with repeat clients
chain. via negotiation, open book and framework style * Construction strategy and culture in prioritising bid
arrangements, with limited, selective open market selectivity over volume.
bids.
* Tender reviews at three key stages of
* A high proportion of our future pipeline is visible pre-qualification, pre-tender and final tender
via our positions on long-term frameworks. submission, with each stage approved by senior
management via tender review boards.
* Using the tender review process to challenge and
mitigate any impacts of rising supply chain costs.
---------------------------------------------------------- -----------------------------------------------------------
Risk and Risk change in reporting period Mitigating activities
potential
impact
Changes to No change
contracts * We have continued to develop digital tools such as * Carrying out work under standard terms wherever
and change management, a supply chain portal for possible.
contract facilitating payment, risk management, and field
disputes scheduling and management, to improve efficiencies.
Changes to * Reviewing contract terms at tender stage and ensuring
contracts variations are approved by the appropriate level of
and contract * Construction's order book maintains a greater management.
disputes proportion of repeat work, meaning we are more likel
could lead to y
costs being to achieve sustainable and predictable outcomes via * Well-established systems of measuring and reporting
incurred negotiated settlement. project progress and estimated outturns that include
that are not contract variations.
recovered,
loss of * The high proportion of framework related, two-stage
profitability and negotiated work in our current order book * Regular project reviews, including feedback from
and delayed continues to reduce the likelihood of unforeseen peers, to provide positive challenge around progress
receipt changes and disputes. and project performance.
of cash.
Ultimately,
we may need * Our digital early warning tools and metrics continue * Continued use and development of electronic
to to develop, flagging potential issues and enabling dashboards for project management and commercial
resort to intervention much earlier in the construction cycle. metrics designed to highlight areas of focus and
legal provide early warnings.
action to
resolve
disputes * Regular reporting on all projects with a particular
which focus on matters likely to impact on programme, cost
can prove and quality.
costly
with
uncertain * Where legal action is necessary, taking appropriate
outcomes, as advice and making suitable provision for costs.
well
as damaging
relationships * Notifying all material disputes to the Board as they
. occur.
* Monthly monitoring of financial and operational
performance on projects.
* Use of electronic change control tools to inform
clients and project teams of the status of the final
account and programme at each stage of construction.
---------------------------------------------------------- -----------------------------------------------------------
Risk and Risk change in reporting period Mitigating activities
potential
impact
Poor project No change
delivery * Early warning tools that flag problems in project * Incentivising project teams on Perfect Delivery1
Failure to delivery, enabling earlier intervention and outcomes to achieve high levels of client
meet provisioning, have been rolled out further across satisfaction.
client Construction.
expectations
could incur * Strategic supply chain trading arrangements to help
costs * Our continued focus on project selectivity reduces ensure consistent quality.
that erode risk in the order book and the probability of poor
profit performance.
margins, * Electronic project management tools which help
lead improve quality and efficiency.
to the * Various initiatives have been delivered in
withholding Construction that focus on improvements in product
of cash quality, predictability and client experience. * Fit Out's sophisticated initiative to drive client
payments service continues to differentiate its offering.
and impact
working * There is a stretch in the labour market which has
capital. It been manageable in the short term but would be * Continued application of early warning tools to
may exacerbated if the government were unable to secure highlight delivery issues.
also result EU skills mobility.
in
reduction of * An escalation process to ensure senior management
repeat * Our Perfect Delivery1 initiative and culture intervention at an early stage if necessary.
business and implemented in the construction divisions is starting
client to make a significant impact on outcomes.
referrals. * Formal internal peer reviews that highlight areas of
improvement and share best practice and 'lessons
* Digital business intelligence enhancements in learned' exercises.
Construction continue to develop in our pursuit of
early warning indicators and intervention. Further
tools are being developed and explored to improve and * Collection and analysis of client feedback.
simplify reporting.
* Monthly monitoring of project performance and
electronic dashboards for project management and
commercial metrics.
* Regular formal and informal stakeholder feedback to
ensure our performance is meeting expectations.
* Regular client satisfaction reviews and feedback,
allowing us to intervene when required and hone our
offering to provide exceptional outcomes.
----------------------------------------------------------- ----------------------------------------------------------
(1) Perfect Delivery status is granted to projects that meet all four customer service criteria specified by each division.
Pursue innovation
Innovation drives quality, efficiency and competitive advantage and continued investment in technology will improve our delivery and service. Business continuity depends on secure and resilient IT systems and the persistent threat of cyber-risks continues to present a challenge.
Risk and Risk change in reporting period Mitigating activities
potential
impact
Failure to No change
innovate * All divisions have continued to develop solutions to * One of our core values is to challenge the status quo
A failure improve efficiency, client service and employee and innovation is strongly encouraged. New ideas are
to produce satisfaction. Examples range from safety initiatives, welcomed from every employee, partner and supplier,
or embrace such as dust control campaigns and the promotion of with an emphasis on efficiency over bureaucracy.
new safe behaviours on site, to online site access
products systems that provide site workers with inductions and
and training. * Our employees enjoy working on high profile,
techniques innovative projects that provide them with the
could opportunity to enhance their knowledge and
diminish * In regeneration, we work with leading investment experience.
our partners to create innovative funding solutions that
delivery to improve the viability of schemes and facilitate early
clients and engagement. * Infrastructure works with some of the UK's leading
reduce companies who encourage innovation and optimised
our construction techniques and share in the risk and
competitive * Our work in regeneration requires us to consistently reward.
advantage. evolve market-leading development structuring that
It could helps unlock underperforming assets, and continues to
also differentiate our offering. * Business and IT come together via forums that sponsor
make us and promote new innovations across the business.
less
attractive * Our initiatives around quality delivery and
to existing exceptional client experience are not just founded on * Our involvement in major infrastructure projects puts
or process, but are integral to our cultural approach. us at the forefront of new innovation in construction
prospective ,
employees. management and project control techniques. This
allows us to compete in areas with high barrier to
entry while sharing new ideas across the Group.
----------------------------------------------------------- -----------------------------------------------------------
Risk and Risk change in reporting period Mitigating activities
potential
impact
Failure to No change
invest * We completed our data centre migrations during 2018 * A dedicated team focused on providing a stable and
in as part of an ongoing plan to ensure the resilience resilient IT environment.
information of our IT network.
technology
(IT) * Continued investment in our core infrastructure and
Investment * All our businesses are investing in significant new application service that has allowed us to introduce
in technology to enhance our stakeholder experience and new and improved technology into the business with
IT is improve efficiency. We foresee this trend continuing. confidence.
necessary Construction & Infrastructure has invested in new
to meet the risk management software and a supply chain
future certification and payment portal, with many more * A centralised IT service that improves efficiency,
needs initiatives in the pipeline. oversight, reporting, security and performance, with
of the divisional resource providing business-specific
business product support.
in terms of * We have continued to invest in established
expected information security controls and have engaged an
growth, external security partner who advises on strategy. * Group-wide and divisional IT forums that discuss and
security report IT strategy and operations.
and
innovation, * Our IT team reached an important milestone in 2018 by
and enables achieving ISO 27001 accreditation. * A dedicated information security team certified and
its accredited by key industry bodies in data protection
long-term and information security.
success. * We are adding construction-specific features to our
recently upgraded financial software.
* Group-wide financial software that provides a fully
integrated construction platform to manage the
* We have rolled out endpoint encryption, active project life cycle.
monitoring and threat analysis of external web-based
threats, as well as data protection and information
security training. * Group-wide risk and IT security strategies that
address creating awareness, threat alert, risk and
vulnerability prioritisation and response.
* We have migrated our active directory to Microsoft
Azure as part of an estate update that will include
Office 365 and Windows 10. This will ensure we have * Government-accredited security installations and
the latest business software and that our data is certification to hold protectively marked information,
secure and protected. including under the government's Cyber Essentials
Scheme.
----------------------------------------------------------- ------------------------------------------------------------
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
ACSUAOARKVAOUAR
(END) Dow Jones Newswires
March 21, 2019 07:38 ET (11:38 GMT)
1 Year Morgan Sindall Chart |
1 Month Morgan Sindall Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
