Morgan Sindall has revealed that around 80% of its construction sites are currently operational but are being hit by lower levels of productivity, partly due to limited availability of some building materials.
The company said it was continuing to operate within government guidelines where it is safe to do so. Around 75% of its infrastructure sites are now operational and it expected to open all sites in the short term, with the exception of its Heathrow-based aviation business, where there has been a “significant and immediate reduction” in all current and future activity.
In fit-out, it has maintained a “moderate level” of activity through April, with a gradual increase in site openings but again it has been hit by limited availability of specialist materials and skills in the supply chain. Around 70% of sites are now operational “at varying levels of productivity”.
However, revenue in its property services arm has declined by around 80% from normal levels after activity on local authority contracts was reduced to emergency repairs only.
The group, which has a £7.6bn order book, has furloughed around 1,700 staff and the chair, directors and senior management have all taken salary reductions of 20% from 1 April for three months.
John Morgan, chief executive, said: “These remain challenging times and our first priority remains the safety, health and wellbeing of all our people, our partners and the public. 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.
“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.”
