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Reliance on public sector contracts has helped spare major City-listed firms from the worst of the recession. While many stock market-listed firms have issued reports drenched in red ink, companies which have shrewdly forged links with public sector service modernisation have reaped the benefit. Morgan Sindall, the construction group, announced its first quarter results had been positive, mainly due to government-backed projects boosting the order book. Contracts for infrastructure, low-cost housing, and refurbishment had off-set the decline in construction. Key deals had included a 10-year project to regenerate Blackpool, worth £220m. Chief executive, Paul Smith, said: ‘With our broad sector spread, we remain well-positioned to face the challenges ahead, and to benefit from opportunities as they present themselves.' IT contractor Logica also conformed strong growth in the first months of the year, linked to an increase in public sector outsourcing. Sales in the three months to 31 March reached £954m from £856m over the same period the previous year, with revenue from outsourcing up 9%. More than half of Logica's UK revenue, up 4% to £182m, was accounted for by public sector contracts. The efficiency drive announced by the chancellor is also likely to be a further benefit for the company, which gave an upbeat assessment for the rest of the year. A spokesman for Logica said: ‘Our strategic shift over the last 12 months to improve our sales capability, and contest and win more long-term, outsourcing contracts, resulted in a strong order intake in the last quarter of 2008 and in the first quarter of 2009. ‘As a result, we expect to see outsourcing revenue benefiting increasingly through 2009.' l Global support services group Ferrovial, parent company of public sector service provider, Amey, has announced it is to complete its take over of road toll business, Cintra.

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BUSINESS

Sector helps private firms thrive in slump

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