Contractor Morgan Sindall has warned of a tough three years ahead after revealing a drop in turnover pretax profits for the year ending 31 December 2010.
Preliminary results show turnover down 5% at £2.1bn and pretax profit down 9% at £41M. But net cash was up 26% £149M and its order book up 21% to £2.0bn.
The results cover the year which saw the firm combine its construction and infrastructure services divisions, a move which it claims will save it £6M year on year. But it warned that it faced tough times nonetheless.
“The UK construction market is expected to weaken over the next three years and the industry is now anticipating the likely impacts of the changes in public spending following the Comprehensive Spending Review (CSR),” it said.
“Although capital expenditure directly from the public sector will fall in line with the CSR, the underlying need for infrastructure investment remains in the key sectors of health, housing, energy, transport and education.
The firm said its current focus was on targeting infrastructure opportunities in power generation and utilities.
It added that its capabilities in project financing, combined with the construction and life-cycle services offered by our divisions, place it in an “excellent position” to secure profitable opportunities as they arise.