Morgan Sindall Group PLC on Thursday backed its guidance for 2022 and said it has been trading in line with expectations so far.

The London-based construction company said its positive trading momentum continued as it entered 2022.

Total secured workload as of March 31 amounted to £8.6 billion, up 6% from the same date a year before. This includes a construction secured order book that totals £4.5 billion, up 14% from the prior year and a regeneration secured order book that amounts to £4.1 billion, down 1%.

Morgan Sindall said it expects to deliver a full-year performance which is in line with its previous expectations.

In Feburary, the company upgraded its medium-term target for the Construction and Infrastructure divisions to revenue of £1 billion per year, having achieved £694 million and £826 million in 2021 respectively.

Its average capital employed is expected to increase to roughly £110 million in 2022.

Morgan Sindall noted it has signed the UK government’s developer pledge letter concerning fire-safety remediation for tall buildings. The additional costs from the fire safety pledge, which requires builders to replace flammable cladding, are not expected to be material, the company said, and will be charged through ordinary trading costs.

The fire-safety programme follows the Grenfell Tower fire in 2017 in which more than 70 people died.

Shares were up 1.0% at 2,100.00 pence each on Thursday midday in London.

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