But contractor says it remains confident of meeting expectations for the year
Contractor Morgan Sindall said today that it was confident of meeting 2009 expectations, despite reporting a 28% fall in first-half profit.
Posting its results for the six months to 30 June, the firm said it had made a pre-tax profit of 拢23.9m, down from 拢33.1m in the same period last year. Revenue fell to 拢1.14bn, down 8% from 拢1.24bn in 2008.
The firm's fit-out division was particularly hit, with a 36% slide in operating profit to 拢7.4m, down from 拢11.5m last year.
But Morgan Sindall said that improved performance in construction and infrastructure, driven by public spending, had brought 鈥渇urther balance鈥� to the group. Infrastructure revenue rose to 拢419m, from 拢395m last year, with an operating profit of 拢9.3m, up from 拢7.6m in 2008.
John Morgan, executive chairman, said: 鈥淲hile the construction industry will face challenging trading conditions in the short term, we are in good shape and will emerge from the downturn a much stronger business.
鈥淥perationally and financially we are well set to take advantage of the opportunities for further growth that will arise in our chosen markets. We are confident of meeting our expectations for 2009.鈥�
The group's forward order book stands at 拢3.6bn.
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