Demand for office buildings softened effects of government cuts, according to Morgan Sindall

Construction group Morgan Sindall has said that the growth in demand for office buildings has helped to offset the issues caused by government spending cuts.

The firm, which constructs schools and houses, as well as fits out offices, has said its order book had grown to £3.7bn at the end of Q2 from £3.2bn in Q1.

However, as the construction recess is not over, the outlook for the company still remains tough. The firm has recently reported a 3% fall in first-half profit – £23.1m to the end of Q2, compared to £23.9m in 2009.

Executive Chairman of Morgan Sindall, John Morgan, said, “The commercial side is growing, but let’s not over exaggerate — it’s growing a bit but not as quickly as governments are spending less.”

He added, “It’s been challenging for a couple of years now and the recession in construction is not over yet.”

Morgan Lovell was founded in 1977 before combining with William Sindall in 1994, forming Morgan Sindall, who have recently stated that their outlook for construction of social housing and refurbishment remains robust.

Panmure Gordon analyst, Andy Brown, said, “If you look back at statements from Morgan Sindall or anyone else in the sector, you’ll see a challenging outlook, but to be honest the numbers are in line with expectations.”

Author: Amy Edwards | | 0 Comments

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