BUILDING group Morgan Sindall is expected to meet forecasts for the current year, it said in a trading update today.

It said markets are still challenging, but the group’s financial strengths and diversity leave it well placed to “emerge from the current market a stronger business than when we entered”.

Its statement, covering the period from July 1 to November 8, said: “In particular the benefit of our emphasis on regeneration is seen in the growth in our regeneration pipeline from £1.8bn to £2.2bn since the half year, with a further £900m of regeneration opportunities currently at preferred bidder stage.”

Construction and infrastructure, which includes a Liverpool base on Wavertree Technology Park, is beginning to see a pick-up in commercial activity, but mainly in Southern England.

However, it said infrastructure markets, such as power distribution, airports, rail and roads, remain healthy.

Lovell, the affordable housing division, including a Birkenhead regional base, said markets have continued to be “robust” in the second half of the year.

But following the £560m allocation of funds to registered social landlords, the business expects to see a number of new-build social housing opportunities emerging in the coming months.

Conditions in the open market housing sector, it said, remain constrained by mortgage conditions.

Fit-out work remains highly competitive, although the urban regeneration arm reports more than double the amount of construction on site than a year ago.

The group said it remains in a robust position with a £3.3bn forward order book.

Liverpool stockbroker Panmure Gordon welcomed today’s statement, saying: “The group has a broad spread of activities, has maintained its financial strength and is making good progress on its drive into regeneration work. We stay positive.”