Morgan Sindall highlights “challenging” market

Grant Prior 10 years ago
Share

Morgan Sindall highlighted how tough the current construction market is in a trading statement to the City today ahead of its half-year results due on August 6.

The firm said it was on course to meet current market expectations although “conditions continue to be competitive across all of our markets given the ongoing uncertainties in the macro environment.”

The current order book of £3.2bn is in line with last year but in the construction and infrastructure division Morgan Sindall said:”We continue to encounter margin pressure as a result of the highly competitive market, which we expect to persist for some time.”

Power distribution, airports and rail were highlighted as growth sectors.

The statement added: “Fit Out continues to be impacted by the lack of major project opportunities although the pipeline of smaller refurbishment projects remains reasonable.

“The timing of contracts this year means that the division’s performance is expected to be weighted to the second half of the year.”

Affordable housing volumes have dropped to 2011 levels while planned and response maintenance opportunities remain “reasonably healthy but competitive.”

Urban Regeneration boasts a pipeline of £1.8bn and Morgan Sindall is increasing its investment in the division.

The firm added: “Overall we have had a satisfactory first half of 2012.

“Whilst we continue to experience challenging market conditions, we are confident that our continued investment in long-term regeneration projects and focus on growth infrastructure sectors will ensure we remain well positioned to succeed in the current competitive market place.”

Latest news

Pagabo names £1.6bn civils framework winners

Forty eight firms secure spots on new civils and infrastructure framework
1 day ago

£1.25bn Stonehenge tunnel job winner revealed

Spanish, Italian, and Austrian JV scoops A303 Amesbury to Berwick Down scheme
2 days ago

Altrad swoops for Doosan Babcock

Over 4,000 staff will transfer to the fast-expanding industrial services group
1 day ago

Suspended jail sentences after fatal roof fall

Court sentences two men after hearing of safety failures on over-cladding job
1 day ago

McAleer & Rushe on track for record £425m revenue

Revenue and profit return to pre-pandemic level as focus grows on high-rise flats
2 days ago

Domis on the hunt for subcontractors and suppliers across Cornwall

Contractor hosting meet the buyer event to set-up local supply chain for string of major projects
1 day ago

Lendlease £140m hospital claim to hit High Court

Cramlington hospital trust claims for new temporary building while remediation works carried out
2 days ago

Balfour bags £50m Piccadilly Line upgrade

First award under latest London Underground High Voltage Power framework
2 days ago

Cash runs out on HS2 old Curzon Street station refurb

Laing O'Rourke/Murphy JV halts work on historic station renovation
2 days ago

MPs call for cut in building demolitions to save carbon

Watchdog MPs set out urgent plan to prioritise retrofit and reuse of buildings over new build
2 days ago

Structure Tone stems losses as order book grows

Fit out specialist racks-up £4m loss but is confident of turnaround this year after restructuring
2 days ago

Construction leaders launch inflation busting taskforce

All sides of industry urged to work together rather than row over price hikes
3 days ago

HG Construction names next chief executive

Adam Quinn, son of one of the MBO founders, to take the reins in July
2 days ago

Lendlease Stratford IQL blue towers approved

35- and 14-storey hexagonal blocks will provide 350 flats
2 days ago

Track worker killed by train was controller of site safety

Distracted rail worker "lost awareness of his position relative to the line the train approached on"
3 days ago

MechFS went down owing £9.5m to supply chain

Subcontractors left holding millions in worthless invoices
3 days ago

HG Construction profit jumps 50% to £25m

Multi-storey homes and student accommodation jobs drive sales to record £243m
3 days ago

Go-ahead for Newcastle’s largest build to rent project

Work to start on 14-storey flats complex in the autumn
3 days ago

Contractors wanted for £288m Northumbrian Water frameworks

Ten lots up for grabs under latest major civils deal
3 days ago

Plans in for 142-room Exeter net zero hotel

RED Construction to build first of hotel developer's planned chain of net zero hotels
3 days ago

Rail workers vote to strike over maintenance job cuts fears

Network could grind to a halt next month
3 days ago

Race for £100m Immingham ferry terminal job

AB Ports aims to start work in mid 2023
4 days ago

Sisk wins Stockport £60m Weir Mill restoration

Work to start next month on 250 flats scheme
4 days ago

Developer swoops for 1,000-flats landmark Leeds site

Revised plans to be submitted by the end of the year for start soon after
5 days ago

Dominvs seals £173m funding for 713-bed student job

HG Construction to start major Hammersmith student complex in November
5 days ago

Briefings start for £1bn Midland Mainline Electrification plan

Market engagement starts for next seven sections covering 139km route to Sheffield
4 days ago

Forterra pushes back £27m factory refurb plan

Supply chain shortages hit project as brick prices rose another 12% last month
4 days ago

Speedy Hire results slowed down by KPMG

Hire giant left "frustrated and disappointed" by delay request from auditor
4 days ago

London office starts set to surge over next 6 months

Deloitte Crane Survey predicts jump in starts in Capital despite high building costs
5 days ago

Fit-out firm BW Workplace slips into the red

£5.2m backdated R&D tax credit deal lifts after tax performance
5 days ago

Contractor services