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 £23.9m, down from £33.1m in the same period last year. Revenue fell to £1.14bn, down 8% from £1.24bn in 2008.
The firm's fit-out division was particularly hit, with a 36% slide in operating profit to £7.4m, down from £11.5m last year.
But Morgan Sindall said that improved performance in construction and infrastructure, driven by public spending, had brought “further balance” to the group. Infrastructure revenue rose to £419m, from £395m last year, with an operating profit of £9.3m, up from £7.6m in 2008.
John Morgan, executive chairman, said: “While 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.
“Operationally 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.”
The group's forward order book stands at £3.6bn.