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Morgan Sindall order book at £3.3bn with regeneration strong

Morgan Sindall has revealed it has a £3.3 billion forward order book and has hailed opportunities in infrastructure, regeneration and social housing as being key to boosting it in the coming year.

In its interim management statement covering 1 July to 8 November, the company said its forward order book was down on the half-year.

However it said that opportunities such as its preferred bidder status on a £500m overhead line partnership for National Grid in joint venture with Vinci Energies would help to boost that in the coming months.

The contractor has boosted its regeneration pipeline from £1.8bn to £2.2bn since the half year with a further £900m worth of work currently at preferred developer stage.

It said: “[Construction and infrastructure division] markets continue to be competitive and impacted by public sector spending cuts, though commercial activity is beginning to pick up gradually in London and the South-east

“Encouragingly, infrastructure markets remain healthy, and the division expects to see opportunities in power distribution, airports, rail and roads, where it has an established track record.”

Among its key contract wins in the second half of the year was appointment to the £150m primary school framework for South Lanarkshire Council, a £750m Network Rail framework under which the division will work on the Western route in joint venture with Colas, and a place alongside its affordable Housing division Lovell on a £3bn framework for Birmingham City Council

It added: “Following the £560m allocation of funds to registered social landlords, we expect to see a number of new-build social housing opportunities emerge in the coming months.”

A total of £19m debt in relation to its takeover of Connaught has been recovered and it said the division is well placed to target mixed tenure, new-build social housing and maintenance opportunities and as well as major housing-led regeneration schemes.

The company added that it expects fit-out margins to continue to be subdued in the near-term, while it hailed the performance of its urban regeneration division, which recently landed the Basingstoke and Deane Borough Council £200m redevelopment scheme

The contractors has a £3.3bn forward order book and a number of major contract opportunities currently at preferred bidder, a growing regeneration pipeline of £2.2bn and £0.9bn of regeneration schemes at preferred developer stage, with average cash year to date at £28m, reflecting ongoing investment in regeneration opportunities.

See Morgan Sindall’s CNInsight profile for more detail.

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