Contractor secures £800m new contracts and expects profit rise in 2007

Contractor Morgan Sindall has announced it is trading in line with expectations in its trading update today.

The group’s preliminary results will be released in February 2007 and it predicts a year of growth and buoyancy.

Construction revenue and profit for 2006 are expected to modestly increase compared to results this time last year. The company will continue to focus on the health, education, light industrial and commercial sectors.

The group has secured £800m of new contracts across the infrastructure, utilities, tunnelling and rail sectors which should see a rise in profit throughout 2007.

The company has also had a successful year with its Affordable Housing and Fit Out’s markets.

Overall, Morgan Sindall’s forward order book stands at £3.4bn, a 22% increase since the beginning of the year. Although the group’s average cash balances will be down on last year’s, this is due to a £23m acquisition in March of the non-track rail business.