Contractor Morgan Sindall posted a 13% increase in its profits to £18.8M for the first six months of 2012 according to its half year results released yesterday.
The firm said it had posted a “solid performance in line with expectations” despite witnessing an 8% drop in its revenue down to £1bn.
It has an order book of £3.2bn but said that the outlook remained “challenging” in the short term with “little sign of any improvement” due to the flailing economic recovery.
Its construction and infrastructure division posted an operating profit of £8.5M, down from £9.5M in 2011, with revenues of £583M, down from £617M in 2011. The firm said it retained its profit margin of 1.5% due to an “efficient management of overheads and careful contract selection”.
“Despite the challenging economic environment, we are encouraged by the continuing opportunities in growth infrastructure sectors and we remain committed to investing in our regeneration business to drive growth over the medium to long term,” said Morgan Sindall executive chairman John Morgan. “While we expect market conditions to remain challenging in the short term, we believe our strong track record of successful delivery and our ability to provide our customers with creative, integrated solutions leaves us well positioned for the future.”