An exceptional charge of £13m taken out against bad debt on old contracts has significantly shrunk Morgan Sindall’s half-year profits.
Pre-tax profits for the first six months of this year would have come in at £15.4m, on turnover that has risen by 2% to nearly £1.1bn.
But the £13m charge and £1.4m in amortisation has taken the reported pre-tax profit down to just £1m.
The group does however report that its order book has risen by 1% since the year end to £3.1bn, supported by a £2.2bn pipeline of regeneration schemes, up 5% since the year end.
Chief executive John Morgan said he expected the “difficult” market conditions experience in the first half to continue in the second half.
“The business will continue to focus on cash management and will look to improve the order book selectively, such that it is well-positioned to take advantage of the growth and investment opportunities in its markets as they arise,” he said.