Morgan Sindall highlights “challenging” market

Grant Prior 12 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

McAlpine pulls out of £55m Carlisle Citadels project

University of Cumbria starts hunt for replacement contractor
2 days ago

Strabag UK suffers further big trading loss

Austrian contractor is gearing up for major presence in the UK market
1 day ago

Durham Uni picks UPP for £130m student scheme

Firm will deliver 1,000 self-catered bed spaces
1 day ago

Architects now upbeat after 10-months of work gloom

Larger practices see rising workloads in next three months
1 day ago

Motorist dies after collision with road paver

Police Scotland investigating fatal crash
2 days ago

McLaren Living appoints HG Construction for £69m scheme

Build to Rent scheme will transform former vacant car park site in Leeds city centre
2 days ago

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
2 days ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
2 days ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
2 days ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
2 days ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
2 days ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
3 days ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
3 days ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
3 days ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
3 days ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
3 days ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
3 days ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
3 days ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
4 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
4 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
4 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
4 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
4 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
4 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
4 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
4 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
4 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
4 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
5 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
5 days ago

Contractor services