London's riots could have a silver lining for Morgan Sindall

Riots in Tottenham might be good news for Morgan Sindall, the construction business that intends to shift its operations in the direction of urban regeneration.

It expects to find more work in this area and less in fitting out offices and hospitals as the Government clamps down on spending.

Executive chairman John Morgan was too diplomatic to discuss Tottenham directly - some might say it needed regenerating long before looters had their fun at the weekend.

He said the shift towards work on so-called brown field sites in city centres will be a "change of emphasis" rather than a complete overhaul of the firm.

"The Government don't have a lot of cash , but they do own a lot of land," Morgan said.

At the moment half the group's revenue comes from the public sector. He expects that to drift down to 40 per cent in the next few years.

Morgan was talking as the business he founded unveiled half-year profits of £16.7 million, a fall of 9 per cent, as margins were hit. The group's revenues rose by 11 per cent to £1.08 billion and the interim dividend was held at 12p.

City analysts are forecasting full-year profits of about £46m.

In the statement, Morgan Sindall said: "While market conditions remain challenging, we continue to make the most of opportunities as they present themselves and invest in our businesses in order to position them for growth in the medium-term.

"We look to the future with cautious optimism," it added.

The shares were today down 2.5p at 615p.