Newspaper article The Evening Standard (London, England)

King of Cash

Newspaper article The Evening Standard (London, England)

King of Cash

Article excerpt

BUILDING contractor not cooking books shock!

That's the headline you expect to see over today's figures from Morgan Sindall. As rivals have been caught booking revenues before contracts have started, low-ball bidding for work to flatter the order books, manipulating cashflows, Morgan Sindall has been keeping it honest.

Rather than over-promise, this company goes the other way. It only bids for work it can make money from, it's cautious on profit forecasts and reports average daily cashflow rather just taking a snapshot at the end of the quarter.

That last point is crucial as it cuts Continued on Page 63 Focus on funds, profit will follow Comment continued from Page 61 the temptation to move cashflow around solely to beat the City's relentless quarterly forecasts.

If Carillion had focused more on conserving cash and less on chasing illusory profits, it would still be here today.

Who's responsible for Morgan Sindall's prudence? John Morgan, the founder, who saw the company get burned after buying racily-run parts of Amec in 2007 which almost kyboshed his business. …

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