Morson finds upturn ‘hard to predict’
TECHNICAL recruitment and outsourced engineering services specialist Morson Group will tell its shareholders at its AGM this morning that the economic upturn remains “hard to predict”.
The AIM-listed Salford-based company, which supplies more than 9,000 skilled white collar personnel to the aerospace and defence, nuclear and power, rail and other industries, will also report that trading remains in line with expectations despite a “challenging” trading environment.
Additionally, the company retains a strong order book coupled with a robust balance sheet.
In March, Morson Group reported that it expected its profits to have dipped by 8% over the past year to £10.8m.
But in a statement issued ahead of its AGM today, the company said that its chairman Gerry Mason would announce the following: “In the period since we announced our preliminary results on March 23, 2010, our trading environment has remained challenging.
“However, the board is confident about Morson’s prospects and trading remains in line with directors’ expectations.
“Our business model is strong and we have excellent visibility of earnings, driven by the requirements of major key UK infrastructure expenditure including nuclear new build and decommissioning activity, maintenance programmes and wider international opportunities.
“We retain a strong order book, coupled with a robust balance sheet.
“We continue to evaluate and seek growth opportunities and will make selective investments where they will add value for shareholders.
“The current economic climate continues to be difficult and any upturn is still hard to predict, however we believe that we are well placed to benefit from any future improvement.”
Over the past year, the company has completed its move to a new HQ on Albion Way, Salford, and also carried out some cost cutting, with the closure of a branch office.
Mr Mason, whose son Ged is chief executive, has previously stated that he expects some of the country’s major companies to continue squeezing spending.
