Morgan Sindall profit falls 15 percent
Feb 15 (Reuters) - Britain's Morgan Sindall Group Plc reported a 15 percent fall in its full-year profit as government spending cuts hurt its construction and infrastructure business, which accounts for more than half the company's revenue.
Profit before tax fell to 34.2 million pounds ($52.94 million) in the year ended Dec. 31, 2012 from 40 million pounds a year earlier.
Revenue declined 8 percent to 2.05 billion pounds.
Revenue from the company's core construction and infrastructure unit, which designs and builds roads, rails, and utilities, also fell about 8 percent to 1.17 billion pounds.
"We continue to face challenges including reductions in public spending, deferred investment decisions and higher levels of competition," the company said.
The construction company has been reducing its exposure to the public sector as it copes with government budget cuts.
With the UK on the verge of a triple-dip recession, the government has so far shied away from increasing public infrastructure spending outright as it tries to keep the fiscal deficit in check.
Morgan Sindall cut its final dividend to 15 pence per share from 30 pence a year ago.
The company's shares, which have dropped 18 percent over the past year, closed at 576 pence on the London Stock Exchange on Monday.