LONDON (ShareCast) - Construction and regeneration group Morgan Sindall said profit continued to be eroded by tough trading conditions and it doesn't expect markets to significantly improve.

Revenue increased 2% to £1.019bn for the half-year to June 30 while adjusted pre-tax profit fell 24% to £15.4m. The figures are before an exceptional charge of £13.0m taken as a provision against amounts recoverable on a small number of older construction contracts, it explained.

Earnings per share for the period fell 18% to 31.5p while the order book was up 1% from the same period in 2012.

Chief Executive John Morgan said: "The first half has seen difficult conditions across all of our markets, with competitive pressures impacting on margins and profitability. The improved positive cash position, however, demonstrates the underlying strength of the business."

"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," it added.

The interim dividend payment has been maintained at 12.0p per share.




CJ

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE