{"id":3284,"date":"2019-02-22T07:36:19","date_gmt":"2019-02-22T07:36:19","guid":{"rendered":"https:\/\/cita.co.uk\/news\/?p=3284"},"modified":"2019-02-22T07:36:19","modified_gmt":"2019-02-22T07:36:19","slug":"morgan-sindall-targets-70m-daily-net-cash-in-2019","status":"publish","type":"post","link":"https:\/\/cita.co.uk\/news\/morgan-sindall-targets-70m-daily-net-cash-in-2019\/","title":{"rendered":"Morgan Sindall targets \u00a370m daily net cash in 2019"},"content":{"rendered":"

Morgan Sindall chief executive John Morgan has committed the group to maintaining\u00a0high levels of daily net cash this year.<\/p>\n

He told the Enquirer that the present contracting environment demanded strong balance sheets to secure work for clients and\u00a0maintain good supply chains.<\/p>\n

He said: “We are very focused on getting cash in because strong\u00a0balance sheets really matter in this market.”<\/p>\n

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Morgan Sindall was now aiming for daily net cash levels to be over \u00a370m during this year.<\/p>\n

He said that clients were increasingly stress\u00a0testing contractors and the balance sheet was becoming a big differentiator at bid\u00a0stage following the collapse of Carillion and high levels of debt at many other big name contractors.<\/p>\n

After posting strong annual\u00a0results, Morgan Sindall has released graphs tracking two years of daily net cash in the business, which reveal relatively stable .profiles from month to month and little year to\u00a0year variance.<\/p>\n

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He said that strong cash management at Morgan Sindall had seen the firm deliver a strong performance over the last two years with net average daily cash dipping to \u00a325m low during September last year. Last year Morgan Sindall enjoyed an average daily net cash position \u00a3100m.<\/p>\n

It also has undrawn\u00a0bank facilities of \u00a3180m through to 2022.<\/p>\n

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He added: “A strong balance sheet reassures all\u00a0stakeholders: customer, shareholders and our supply chain partners.”<\/p>\n

Contractors problem have also been magnified by the steady shift by clients away from releasing cash upfront on projects to more steady funding on framework\u00a0and partnership projects.<\/p>\n

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The business is now receiving 28% of work from frameworks – up from 17% in 2017, which means work is less cash positive going forward.<\/p>\n

Construction and Infrastructure\u00a0division is reported to be paying the supply chain\u00a0within 44 days, while the fit-out business\u00a0Overbury is down to 26 days.<\/p>\n

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from Construction Enquirer https:\/\/ift.tt\/2ItdIuF<\/p>\n","protected":false},"excerpt":{"rendered":"

Morgan Sindall chief executive John Morgan has committed the group to maintaining\u00a0high levels of daily net cash this year. He told the Enquirer that the present contracting environment demanded strong balance sheets to secure work for clients and\u00a0maintain good supply chains. He said: “We are very focused on getting cash in because strong\u00a0balance sheets really […]<\/p>\n","protected":false},"author":1,"featured_media":151,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[9],"class_list":["post-3284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-construction-enquirer"],"_links":{"self":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/3284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/comments?post=3284"}],"version-history":[{"count":1,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/3284\/revisions"}],"predecessor-version":[{"id":3285,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/3284\/revisions\/3285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media\/156"}],"wp:attachment":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media?parent=3284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/categories?post=3284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/tags?post=3284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}