In its latest trading update, the group says its order book has been maintained at £4.3bn, the same level as at the start of the year and average cash balances to date are above those achieved last year.

Overall the group says it, " remains on track for 2008 although any prolonged slow down in certain sectors may impact 2009 and beyond."

Among its individual services Morgan Sindall said construction has made a satisfactory start to 2008, as it continues to focus on its key sectors of health, education, light industrial, retail and defence.

Infrastructure Services has also started the year well securing major new road projects at the M74 in Glasgow and the A1073 in Lincolnshire, it added.