INDUSTRY NEWS

Office supplier feels commercial property falls

Morgan Sindall, office interior supplier, has seen its share price drop 13 per cent in one day, it has been reported.

The firm has felt the pinch following falls in commercial property values in London – conditions in the market have become "increasingly challenging" it said.

Global financial difficulties have lead many firms to be more cautious of late. This has reduced their investment and expansion plans and cut spending on new offices in London.

Prior to its annual general meeting in April, executive chairman, John Morgan said: "The wider fit out market has held up over the first quarter although the credit crisis has led to subdued fit out activity in the financial services sector."

The company’s stock fell 35 per cent this year and its value dropped to £292 million, although it claimed it will meet its forecasts.

Successful businesses often seek new commercial property so they can expand and have space for additional staff.

The slowdown in commercial property construction has left Morgan Sindall "a lot more exposed" than its rivals, Numis Securities analyst, Howard Seymour, told Bloomberg.

ADNFCR-1329-ID-18665953-ADNFCR

Leave a Reply

Your email address will not be published.