Contractor's trading update anticipates that profits will be in line with expectations.

Contractor Morgan Sindall has announced a trading update for the first half of 2006 before revealing its interim results in August.

The group predicted that profits would be in line with expectations.

The fit-out division's market is expected to make an increase on expectations and has secured contracts with a total value of £231m.

Construction and affordable housing continue to grow strongly and are expected to deliver profits in line with expectations.

John Morgan, executive chairman, said: "The Group has made further progress in the first half of 2006, winning a number of new contracts giving us another record order book. All of our market sectors are growing, which offers exciting opportunities and provides a positive outlook for the Group."