Morgan Sindall says it is on track

Morgan Sindall said yesterday it remained on track to meet its full-year expectations but warned that tough market conditions had continued to squeeze its margins as companies compete for a shrinking pile of construction work. In a trading update for the first half of the year, the construction group said its financial position “remains sound” with the forward order book of £3.2bn, broadly in line with the start of the year.

However Morgan Sindall said its fit-out unit continued to be impacted by the lack of major project opportunities while its affordable housing arm had been “weighed down” by the lack of grant funding for social housing schemes.

Overall, the group said it had “a satisfactory” first half.