Morgan Sindall warns of tough times ahead
The group, which is behind the overhaul of Edinburgh’s Haymarket train station, said margins were coming under pressure because of tough competition in the construction and infrastructure sector.
As a result, adjusted pre-tax profits for the six months to the end of June fell to £15.4 million, from £20.3m a year earlier, despite a 2 per cent increase in revenues to £1 billion.
Advertisement
Hide AdAdvertisement
Hide AdChief executive John Morgan said: “The first half has seen difficult market conditions across all of our markets, with competitive pressures impacting on margins and profitability.
“Looking ahead to the second half, overall market conditions are not expected to significantly improve. The business will continue to focus on cash management and will look to improve the order book selectively, such that it is well positioned to take advantage of the growth and investment opportunities in its markets as they arise.”
Following the drop in profits, the interim dividend was held steady at 12p a share.