TRADING at construction group Morgan Sindall is in line with expectations, despite the challenging market conditions.
A market update covering the six months to June 30 revealed that the business has strong forward orders and access to £75m of banking facilities which have recently been renewed until mid-2012.
The company is represented throughout Merseyside through its affordable housing brand Lovell, based in Birkenhead, and its Morgan Ashurst building operation in Liverpool’s Highfield Street.
Directors said that, despite the tribulations facing the sector, the group is trading positively and is on course to hit targets for the year.
“The group remains on track to meet our expectations for the current year,” the statement said.
Interim results are scheduled for release on August 10, which will give a clearer picture of how the business is faring.
But the firm did admit that its fit-out division, as expected, is facing tougher market conditions with revenues down by almost a quarter compared with last year, although the current forward order book is in line with the start of the year.
Robust public sector spending has helped improve the performance of the construction arm, while infrastructure services maintained its position helped by bids in the utilities and civil engineering sectors.
Although the open housing market remains subdued, refurbishment and new-build social housing revenues have helped the affordable housing division.
And two large schemes, worth more than £300m over six years in Doncaster, and £220m over 10 years in Blackpool, were the highlights during the first half of the year for the urban regeneration team.
The trading statement said the group order book stands at £3.6bn, in line with the start of the year, while the group’s financial position remains “strong” with net cash and £75m of banking facilities through to the middle of 2012.
In April this year, Lovell’s John Street office, in Birkenhead, won a £2.7m contract to build affordable housing in Netherley, south Liverpool, on behalf of Lee Valley Housing Association.
It involves 23 new homes for rent and shared ownership through the housing association, which is part of The Riverside Group.
Lovell was appointed to the project through its membership of the Riverside partnership framework.
