Construction company Morgan Sindall reported a 34 per cent slide in annual profits after margins were hit by competition across its construction, infrastructure and affordable housing divisions.
The firm, which has major operations across Yorkshire and offices in Leeds and Hull, said its construction and infrastructure division, which accounts for more than half of total revenue, experienced challenging market conditions throughout the year, which had a significant impact on overall profits.
The group’s adjusted pre-tax profits fell to £31.3million in the year to December 31.
The company said that its Leeds office is on site at an £8m development on the former site of Queen’s Hall on Sovereign Street in Leeds city centre.
The 61,000 sq ft scheme will be occupied by KPMG as its new Yorkshire headquarters when the building is completed in 2015.
It is the first of three buildings proposed around a new area of green public realm on Sovereign Street.
The Leeds office also won a £1.9m contract to extend the White Rose Shopping Centre in the south of Leeds.
The project for Land Securities will involve expanding the existing facilities to make way for additional shops.
The firm has completed a £6.7m major extension to Europe’s largest soft drinks factory for Coca-Cola Enterprises in Wakefield as part of a £30m investment in the site.
Morgan Sindall’s tunnelling business is working with Yorkshire Water Services at sites in both Bridlington and Scarborough to improve the bathing water quality as part of the Yorkshire Water Framework joint venture.
The Bridlington and Scarborough projects, worth around £22m and £26m to the joint venture respectively, include the construction of two new combined sewer overflow chambers and an 800 metre-long, two metre diameter, storm water tunnel at Bridlington.
Graham Shennan, managing director of Morgan Sindall, said: “2013 was a busy year for Morgan Sindall despite challenging market conditions.
“We enter 2014 with a strong order book.”