Morgan Sindall, the construction and materials group, had suffered from low levels of public and private sector demand for office refurbishment. Its last set of results saw profits fall 28% on revenue declines of 13%. For the first half of this year revenues were down 14%, but pre-tax profits fell just 3% as the impact of the group's restructuring initiatives were felt.
The group's cash balance improved 55% to �138m and it declared an unchanged interim dividend.
There were some signs of life for the group. Its fit-out division saw revenues rise 12% on improved business conditions, particularly in London. Its forward order book rose �0.5bn to �3.7bn. Management said that the group would meet full-year expectations in spite of 'challenging' market conditions.
The group's affordable housing division remains vulnerable to contraction in public sector spending. Its revenues were flat on the previous half year. However, Morgan Sindall recently took over facilities management group Powerminster Gleeson Services, which should improve its position in the sector.
The shares dipped 0.6% to 555.5p on the news. The shares have done little since falling precipitously from highs of over 1,750p in 2007. The consensus view remains that it is a well-run company in a very difficult sector. The shares trade on just 6.85x earnings.