Morgan Sindall on track for stable year

Morgan Sindall, the construction and development group with bases across the North West, said it was on target to meet expectations for the year and remains well positioned going into 2009.

The regeneration division, Muse Developments, based in Salford, is "renegotiating a number of development agreements" with the public sector. These include Talbot Gateway with Blackpool council and the Victoria station project in Manchester with Network Rail. Muse is also a partner in English Cities Fund, developer of St Paul's Square offices in Liverpool.

Blackpool council recently passed a draft agreement for Talbot Gateway, a 25-acre scheme next to Blackpool North train station.

Today's interim statement said: "The regeneration market continues to be subdued, although [Muse] is pursuing a number of public sector opportunities in the short term. As previously stated the division has limited exposure to the revaluation issues impacting the sector. It has a long term pipeline of projects."

The fit out division which includes Overbury, based in Manchester's Spring Gardens, "is delivering a strong second half performance" with orders consistent with the start of the year, although demand is expected to fall in 2009.

Morgan Ashurst, the construction business based in Liverpool and Salford Quays, is holding up largely due to having 50% of its activity in the education sector.

Lovell, the affordable housing business with a regional base in Altrincham "continued to perform robustly".

The statement added: "The Government's reiteration of its commitment to the affordable housing sector is encouraging and we continue to believe that mixed tenure regeneration will drive growth in the longer term."

The overall group order book has reduced slightly to £4.0bn from £4.2bn at 30 June 2008.

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