Turnover at North Midland Construction is currently 30 per cent below budget, but year end profit is expected to be on target, the firm said today.
But North Midland Construction said the profit level will be achieved before any provision is taken for its £1.5 million fine from the Office of Fair Trading following its cover pricing investigation.
In a trading update for the period from 1 July 2009 to 30 September, North Midland said it was currently seeking legal advice with regard to the OFT ruling.
Restructuring and cost reduction measures have been implemented across the group to adjust for current market conditions.
The group’s marketing strategy has also been modified, due to the decline in private sector demand.
A statement said: “The order book for 2010 currently stands at £64 million and this, coupled with the AMP5 framework for Severn Trent Water, due to commence on 1 April 2010, and the South Yorkshire Digital contract gives a degree of confidence for next year.”