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.”