Government Cuts Hit Morgan Sindall

[interestrateripoff]

My http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8688773/Government-cuts-hit-Morgan-Sindall.html

The company remained relatively upbeat and maintained the interim dividend, payable on Spetember 16, at 12p.

John Morgan, executive chairman said: "We have cash in the bank, we are financially strong, so we didn't see much point in changing it."

Margins dropped from 2pc to 1.5pc in the construction division – which represents almost 60pc of sales – as tender prices fell in a competitive market, and material costs rose.

Mr Morgan added: "Government cuts are quite severe. It is at a time when private spend on construction is low, although that is beginning to improve."

Morgan Sindall does about half its business with the Government, but expects that to decline to about 40pc of sales by this time next year.

Another company who's success is largely dependent on govt spending???

[porca misèria]

Another company who's success is largely dependent on govt spending???

Is the torygraph spinning there?

Morgan Sindall acquired the lion's share of Connaught's social housing portfolio from the receivers last year. Quite a big operation to swallow. If that's running on tight (maybe zero) margins, the company as a whole would take a hit on the bottom line. But with an expectation of better things in future once they've sorted Connaught's problems.

That may or may not be relevant. It's also perfectly possible the story is exactly what it seems.

[South Lorne]

Is the torygraph spinning there?

Morgan Sindall acquired the lion's share of Connaught's social housing portfolio from the receivers last year. Quite a big operation to swallow. If that's running on tight (maybe zero) margins, the company as a whole would take a hit on the bottom line. But with an expectation of better things in future once they've sorted Connaught's problems.

That may or may not be relevant. It's also perfectly possible the story is exactly what it seems.

..difficult to collect rent ...and property values dipping...

[Snugglybear]

..difficult to collect rent ...and property values dipping...

Connaught didn't own any social housing.

Connaught Partnerships - the part of the group that was placed in administration in September 2010 - provided "a range of planned and response maintenance services, as well as compliance and estate management to social housing landlords throughout the United Kingdom", to quote a blurb.