Morgan Sindall cheered by two contract wins after profit warning

5th Nov 2014 11:11

Construction group Morgan Sindall, which warned on profits last month, on Wednesday got a boost by winning two contracts with defence group BAE Systems and UK rail infrastructure operator Network Rail.Morgan's construction and infrastructure division, which has seen a "challenging backdrop", will deliver a £300m eight-year redevelopment programme for BAE together with two other contractors.It also secured a £113m position on the Edinburgh-Glasgow Improvement Project (EGIP) alliance for Network Rail, which is part of the £250m Scottish Government-funded investment in the country's transport network.Scottish Transport Minister Keith Brown said: "This announcement signifies a massive step forward for EGIP, for Scotland's railways and for many benefits far beyond."Morgan warned on annual profits last month following delays and higher costs on several construction contracts in London and southern England.Morgan Sindall's chief executive John Morgan said: "We are delighted to have been appointed to these two critical projects which will enable BAE Systems and Network Rail to deliver on their strategic and operational ambitions."Despite the challenging backdrop in the construction sector, our expertise in delivering complex, high-quality infrastructure projects for our customers ensures we are well positioned to take advantage of the healthy pipeline we see ahead."Shares were down 0.08% to 656p at 10:38 on Wednesday.