Construction group issues warning following weaknesses in housing and fit-out sectors
Construction and regeneration group Morgan Sindall has issued a profit warning for 2009 due to weakness in the housing and fit-out sectors.
In a trading update, the group said challenging market conditions in the commercial property and open market affordable housing market would hit its performance next year.
It said: “The volume of open market house sales for 2008 is expected to be around half the level achieved last year when it accounted for 6% of group revenue.”
The group also said the fit-out market was softening despite the fact it “remains on track for 2008”. The order book is down against the same period last year, although the firm did not say by how much.
It said the construction business has traded in line with expectations over the first six months of 2008 although it was a mixed picture of strong public sector demand and a weaker commercial property market.
Morgan Sindall shares were down 12% at 657p in early trading.