It said the newly-formed Morgan Sindall construction division had converted £900m worth of preferred bidders opportunities into secured work and the outlook remained “robust”.

The forward order book has improved by around a quarter since the start of the year, although the latest trading statement cautioned that the firm was concerned about future spending cuts.

“Uncertainties remain about the precise impact of the planned cuts in public spending and the group continues to monitor the situation closely and to develop contingency plans accordingly,” said the statement.

The group expected to have net cash of £100m at the half year and the overall order book advanced £300m to £3.5bn since the start of 2010.

Morgan Sindall’s fit-out business, largely delivered by Overbury, has benefitted from the return of big London projects with revenues ahead  10% compared to a year ago.

Its order book is up by a third since the start of the year, although market conditions are expected to become even more competitive in the second half of this year.