Construction giant says margins impacted in construction, infrastructure and affordable housing
Construction giant Morgan Sindall has warned that operating performance has fallen short of expectations in the first quarter of the year following difficulties in its construction, infrastructure and affordable housing divisions.
The firm said overall revenues came in as expected but that these areas of the business were “impacted by margin contraction.”
In a statement covering the period from January 1 to now, issued ahead of its Annual General Meeting, the firm said its affordable housing business Lovell was experiencing “significant pressure on construction revenue and margins.”
The statement said the firm expected market conditions to remain difficult throughout 2013 with no short-term improvement envisaged. It said its order book had risen 6% on the same point last year to £3.2bn, meaning that the business was “well-positioned to benefit from profitable opportunities as they arise, with a strong bias towards the second half of the year.”