Morgan Sindall profits and sales fall

CONSTRUCTION company Morgan Sindall yesterday posted a 9 per cent fall in its full-year profits but held its dividend steady as it hailed the success of its Lovell affordable housing arm.

The group - which has construction, infrastructure, urban regeneration and fit-out divisions - reported a 5 per cent drop in sales to 2.1 billion as "challenging" conditions left full-year profits at 40.7 million.

The affordable housing arm hiked profits by 8 per cent to 16.1m and saw its order book improve to 1.5bn after the acquisition of some assets at collapsed firm Connaught boosted its services in social housing.

With the division also lifted by an earlier deal to buy MJ Gleeson's maintenance arm - Powerminster - Lovell secured contracts with 45 local authorities and housing associations.

The group said the deals extended its coverage in the south and south-west of England. Its workload has also been buoyed by the award of a 45m social housing contract to create 545 homes for West Lothian Council and a 75m redevelopment contract for Glasgow City Council. Nearly 800 of the firm's 7,000 staff are based in Scotland.