Insider Media Limited

Construction giant Morgan Sindall has reported a 9 per cent drop in pre-tax profit for the first six months of 2011 this year (8 August 2011) as "market conditions remain challenging". Yet the group, with major operations across the Midlands, has recorded an 11 per cent boost in revenue to £1.087bn.

Pre-tax profit for the six months to 30 June 2011 was £16.7m - down from £18.4m at the equivalent stage last year. Profit before tax, amortisation and non-recurring items for £19.5m - down 16 per cent on 2010's £23.1m figure.

The company said "tough market conditions" led to the profit drop and said it was also affected by a £900,000 charge linked to the modification of IT systems following the integration of construction and infrastructure services in 2010.

But looking ahead, the business reported a "strong order book" of £3.5bn with £1.8bn-worth of regeneration schemes at preferred bidder scheme.

The company said it would continue to invest "for growth in the medium-term" and it was in "robust operational and financial shape and (is) confident of meeting our expectations for the full year". A 12.0p dividend has been maintained.

Executive chairman John Morgan said: "Our broad sector spread, increasingly joined up approach and focus on more complex projects has helped to underpin a solid set of results.

"While market conditions remain challenging, we continue to make the most of opportunities as they present themselves and invest in our businesses in order to position them for growth in the medium-term.

"We look to the future with cautious optimism and are confident that we are well positioned to deliver long-term sustainable growth."

The figures covered a six-month period to 30 June 2011.

Morgan Sindall has major operations across the Midlands including Morgan Sindall's construction and infrastructure division in Rugby, Lovell in Tamworth and Morgan Sindall Professional Services in Stratford-upon-Avon.