黑洞社区

Results published this week from three of the biggest UK contractors showed the deepening impact of the gloomy economic environment.

On Wednesday Interserve reported a fall of 14.5% in profit from its construction division despite a 10% growth in profit across the whole business, which also includes support services work. Profit in the construction business fell to 拢20.1m with revenue falling 5.5% to 拢484.1m in a 鈥渃hallenging鈥� environment.

Interserve blamed the revenue fall on cuts in public spending, saying 鈥渟igns of an anticipated moderation in public sector spending are reflected in the revenue decline鈥�.

The news followed contractor Laing O鈥橰ourke reporting a halving of full-year pre-tax profit to just 拢25.9m on revenue of 拢3.3bn, resulting in a profit margin of just 0.75%.

The number of staff employed by the firm fell by a quarter from 19,668 to 15,027, as the company laid off workers in Europe in light of the falling workload, and beefed up its operations
in Australia.

Turnover was down 6% from the 拢3.53bn reported in 2010. Chairman and chief executive Ray O鈥橰ourke said the results demonstrated the firm鈥檚 resilience despite the 鈥渃ontinuing economic turbulence鈥�.

鈥淲e continued to steer the company through recession, posting a profitable performance and winning new work in parallel, reflecting progress on all fronts,鈥� he said.

Contractor Morgan Sindall announced its intention to focus on regeneration as it reported half-year results showing pre-tax profit down 9% to 拢16.7m.

The reduction in profit came despite a rise in turnover of 11% to 拢1.09bn, partly off the back of the 拢28m purchase of contracts from defunct social housing business Connaught.