Firm says pipeline of regeneration jobs has risen sharply
Morgan Sindall’s forward order book has reduced by £200m since it reported half yearly results in August, the contractor said in a trading update today.
Morgan Sindall said that it currently has £3.3bn of contracted forward orders, compared to £3.5bn in August, but that the reduction was more than made up for by £0.3bn of contracts at preferred bidder stage.
On the development side of the business the firm said its pipeline of jobs at preferred developer stage had grown by £100m since its interim management statement in November. Following the firm’s shift toward regeneration projects, announced in August, its contracted pipeline has grown from £1.8bn to £2.2bn.
Overall the company said it was on track to meet market expectations despite “mixed” market conditions. In the last month it has been selected, in joint venture with Vinci, as preferred bidder on a £500m overhead power line framework for National Grid, as well as a share of the Whitechapel Main Station Works Crossrail contract worth £110m.
The update today said: “We remain confident of meeting our expectations for 2011. Although we are cautious about 2012 we believe our medium term prospects have improved over the course of 2011 with our greater emphasis on regeneration being reflected in a growing regeneration pipeline.”