Morgan Sindall Group PLC (LON:MGNS) shares were on the up on Thursday as the group said its order book had remained unchanged from the year-end position despite disruption caused by the coronavirus pandemic.
In a trading update, the construction group said its secured workload as of 31 March was £7.6bn and that its balance sheet was in “good shape” with net cash of £174mln as of 5 May.
READ: Morgan Sindall’s results prompt target price hike from Peel Hunt
The company also said around 80% of its construction sites were currently operational as well as 75% of infrastructure projects and 70% of fit out projects.
“With this high-quality workload and with the balance sheet in good shape, the group is well-positioned to successfully navigate through these current uncertain times and emerge primed for future success in the medium and longer term”, the company said.
However, Morgan Sindall continued to suspend its forward guidance due to the pandemic uncertainty.
“Our decentralised structure has allowed us to adapt quickly to these evolving circumstances and to rapidly adopt new ways of working, which will stand us in good stead for the future”, said chief executive John Morgan.
“Our strategy remains unchanged, focused on building long-term workstreams in markets that remain attractive. Supported by a strong balance sheet, the actions taken put the Group on the best footing to ensure its continued success", he added.
In a note, analysts at Peel Hunt retained their ‘add’ rating and 1,500p price target on the firm, saying the update provided “encouragement” regarding site reopenings and productivity.
“In addition, net cash of £174mln implies a likely positive average daily net cash position for [the 2020 financial year]”, the broker said, although they added that investors “are likely to look for further evidence of recovery” before rerating the share price.
Morgan Sindall shares rose 5.4% to 1,271p in early trading.