It said that its cash position remains strong and the forward order book has increased slightly since the start of the year.
Overall, the Group's forward order book has increased since the start of the year from £3.6bn to £3.8bn and Group's development pipeline has increased by £350m to £1.8bn.
The construction and infrastructure business is trading in line with expectations and its order book has increased since the start of the year, to be level with the corresponding period last year. Significant wins in the period include the £50m Pudding Mill Lane Crossrail contract as well as a place on two lots of the £500m Smarte East Alliance framework. “While we anticipate the market will remain competitive, the division continues to pursue a number of significant opportunities particularly in the power distribution, airports and rail sectors where growth is being driven by investment in economic infrastructure,” said the company.
Affordable housing has seen a slight improvement in market conditions for open market housing compared with the second half of 2010, driven by improved sales pace with house prices remaining steady. The division has secured a number of new build social housing contracts including a £25m sustainable housing contract for Hackney Council and a place on two major frameworks (valued at up to £210m in total) in Scotland for Port of Leith and West of Scotland housing associations. Planned and response maintenance contracts are performing in line with expectations and there is a reasonable pipeline of opportunities in this sector of the market, it said.
The fit-out market remains highly competitive with continued downward pressure on margins, said the company. The division's forward order book is slightly below the level at the start of the year and the corresponding period last year.
Urban Regeneration continues to progress the next phases of development on a number of its key schemes. It has traded in line with expectations since the start of the year and expect the division to make progress this year. Transaction timings mean that operating profits are expected to be weighted more towards the second half.
The Investments division has signed contracts for a regeneration scheme in joint venture with Bournemouth Borough Council. The scheme, which will deliver a range of mixed-use and residential development across 17 sites in the town, is expected to have a development value of between £350m and £500m over 20 years.
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