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Morgan Sindall warns of Covid-19 impact

The construction and regeneration specialist says earnings will be hit in 2020 and is taking measures to preserve cash
March 25, 2020

Morgan Sindall (MGNS) says that while performance in the first 10 weeks of this year was in line with expectations, it is now experiencing disruption from the Covid-19 outbreak. Certain construction sites have closed and activity elsewhere has slowed amid the UK’s new lockdown measures. This is expected to materially impact 2020 earnings, but the group says it is too early to provide guidance.

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In order to preserve cash, it has drawn on its £180m of committed banking facilities and cancelled the final 38p dividend declared for 2019. The group says a second interim dividend is possible depending on how the coronavirus situation unfolds. It had £102m of net cash as at 20 March, including £60m tied up in joint operations.