Although the company is busy in the first half of 2011 on the back of a £217m order book for its UK operations, prospects for the second half are described as “poor, very much in line with newly released industry forecasts”.
Several commercial office projects in London and some projects in the power sector are being deferred until 2012. Overall UK demand for 2011 will be lower than expected as a result of slower than anticipated economic recovery, reducing public expenditure and significant increases in steel prices at a difficult point in the business cycle, the company said.
Although tender prices have bottomed, pricing will remain very tight through 2011 and will also reflect a deterioration in sector mix from that previously forecast.
This has led the company to lower its expectations for 2011, but with the prospect for some recovery starting early in 2012.
Results for 2010, to be announced on 22 March will be in line with management expectations.
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