BUILDING and infrastructure services group Morgan Sindall said a boom in low-cost housing provision had helped half-year profits soar 31 per cent.

The group said profits at its affordable housing division more than doubled to a record £5.7m following increased spending by the Government and housing associations.

The company's subsidiary, Lovell, an affordable housing provider with a base in Stockton, contributed towards the healthy results.

Lovell is working on a £25m housing refurbishment scheme in Sunderland, in partnership with Sunderland Housing Group. Overall, Morgan Sindall posted pre-tax profits of £11.6m for the six months to June 30.

Sales increased by eight per cent to £604m, including a 50 per cent rise in turnover at the affordable housing operation.

Morgan Sindall said the outlook for this division was very positive following recent Government announcements of more funding for affordable housing.

Chairman John Morgan said the group was well placed to take advantage of opportunities in the public and private sectors.

He said: "We have a strong forward order book and are confident of achieving our expectations for the full year."

Morgan Sindall has a forward order book of £1.55bn.

The group employs 5,000 staff across the UK.

The company said work on the Channel Tunnel rail link between Dagenham and Thurrock, in Essex, was progressing extremely well and due to be completed next year.

Construction of a tunnel extending the Piccadilly and Heathrow Express lines, in London, providing links to Heathrow Airport's Terminal Five, is also on schedule to be completed next year.

Published: 10/08/2004