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NCE Live News Updates Thursday 7 November 2013: Morgan Sindall margins under pressure

Morgan Sindall has revealed that construction revenue and margins remain under pressure.

10am: Engineers are preparing to remove the first of more than 1,000 nuclear fuel rods from one of Fukushima’s wrecked reactor buildings, according to the BBC.

The fuel rods are in a precarious state in a storage pool in Unit 4 and while their removal is risky, it is seen as vital to stabilising the site.

9.20am: Contractor Morgan Sindall has announced an improvement in its forward order book but said Group profit margins were being impacted because of squeezed margins in its Construction & Infrastructure division.

The firm said there remained “significant competitive pressure” on construction revenue and margins, which was exacerbated by a rise in material and subcontractor costs.

Forward orders were up 6% to £3.3bn for the third quarter of the year on the half year position, according to the firm’s interim management statement for the period to 1 July.

It said the forcus for Construction & Infrastructure would remain on “operational delivery, contract selectivity through the risk management of contractual terms & conditions and working capital management”.

“As markets recover, upward pressure on material costs and subcontractor costs will provide additional management challenges,” the statement added.


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