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Contractors report stable trading

5 Jul 11 A handful of contractors have this morning issued trading updates to the stock exchange and the consensus message is that they are all coping at least adequately with current market pressures.

Galliford Try, Interserve, Morgan Sindall and Interior Services Group (ISG) all offered reassurance that upcoming results statements would offer no surprises and trading continued to be in line with expectations.

Galliford Try said that its results for the year ended 30 June 2011 were “expected to be in line with current market expectations”.  Its cash position, however, is ahead of expectations, with net cash of more £30m, compared to net debt of £31m six months ago. Its construction division has given a “resilient performance in difficult markets” while housebuilding has seen completions up 27% to 2,170 units

Galliford Try chief executive Greg Fitzgerald said: "Two years into our transformational housebuilding expansion plan, we are on target to meet our objectives. In addition, we have maintained a high quality construction order book, winning a series of valuable projects during the period, and maintaining excellent cash balances. Our financial strength and the spread of our activities mean that, subject to the economic uncertainties affecting our markets, we enter the new financial year with confidence."

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Interserve chief executive Adrian Ringrose said: “We continue to perform well in a challenging environment and reiterate our expectation of stable trading in 2011 compared with 2010.”

Morgan Sindall said that it was continuing to win work although at lower operating margins: “Overall we have had a positive first half of 2011 and, with our track record in growth sectors, broad sector spread and depth of capabilities, we remain well positioned to face the challenges ahead and to benefit from opportunities as they arise.”

ISG said that trading for the year ended 30 June 2011 had “remained resilient with increased activity largely offsetting lower margins in the current competitive environment”.  The UK construction business had had a good year in the southeast, although the rest of the country “remains challenging”, particularly in the southwest, resulting in the need for an exceptional restructuring cost there. 

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