The firm is keeping a tight reign on costs and overheads in its construction and infrastructure division as margins come under pressure due to intense bidding competition from rivals.

In a trading statement to the city today, the firm said: “The Construction and Infrastructure division’s markets remain highly competitive and we are seeking to counter the ongoing margin pressure that we face through careful contract selection and tight control of costs and overheads.

“The division is targeting growth in the infrastructure sectors of roads, rail, aviation and energy distribution.”

Morgan Sindall is expecting a gradual recovery in the fit-out market led by London offices while affordable housing is showing some signs of recovery.

Its investment arm is focused on generating work for the construction division.

The company curently has a £3.2bn forward order book and said: “We have made a solid start to 2012.

“With our focus on investing in regeneration and growing our construction market position, we remain well placed to respond to growth opportunities and to succeed in the current competitive market.”