John Morgan, the executive chairman of Morgan Sindall, has said the percentage of public sector work on its order book will fall below 50% as a result of the coalition cuts

Speaking after the company announced a 14% drop in turnover to 拢980m in the six months to 30 June, Morgan said: 鈥淭he order book was 60% government work and now it鈥檚 50%. Next year it will be 40% although it鈥檚 difficult to tell exact figures ahead of the Comprehensive Spending Review in October.鈥�

Talking about the extent of the cuts so far imposed by the government, including the scrapping of the 黑洞社区 Schools for the Future scheme, Morgan said: 鈥淲e don鈥檛 like the cuts but they鈥檙e not different to anything we should have expected.鈥�

Despite the impact of the cuts, Morgan Sindall reported that its order book was up 拢500m to 拢3.7bn and the company ended the period with cash of 拢138m - having had an average cash reserve of 拢61m over the six months.

But pre-tax profit was down 10% from 拢20.5m to 拢18.4m and the company said the outlook for the rest of the year remained challenging, but added that its 鈥渂road spread of activities provides resilience鈥�.

The turnover of its newly combined construction and infrastructure division fell by almost a quarter from 拢797m to 拢612m.

Meanwhile, turnover was up 12% at its Overbury fit-out division, to 拢179m, driven by greater demand for larger projects from professional and financial services sectors in London.

Asked whether the company would pursue more acquisitions following the deal in June to buy the Powerminster response maintenance firm from MJ Gleeson for 拢6.6m, Morgan said more could follow in the same area. 鈥淚 wouldn鈥檛 rule out any acquisitions. We are always hungry,鈥� he said.

Morgan Sindall has also been named preferred partner for the Bournemouth Town Centre Master Vision regeneration scheme worth up to 拢500m. The 20-year scheme is a joint venture public private partnership with Bournemouth council.

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