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Morgan Sindall鈥檚 order book has edged up to 拢2.7bn since the start of 2015, the firm has said in a trading update.

The construction group said it was trading in line with expectations. The order book rise represents a 1% increase on the start of the year.

The firm said the performance of its construction and infrastructure business is 鈥済radually鈥� improving compared to the first half of 2015 鈥渁s further progress is made with completing and closing out a number of its lower margin construction contracts in London and the South East鈥�.

Margins have also improved for the company鈥檚 fit-out arm, which Morgan Sindall said had 鈥渃ontinued to trade strongly鈥� in the second half of the year. The firm reported that its affordable housing business is in line to complete a 鈥渟ignificant proportion鈥� of its open market house sales in the fourth quarter.

Meanwhile the company said its Urban Regeneration business鈥� active development schemes were progressing as expected, but final scheduled completion on some of the developments is 鈥渄ependent upon third party construction programmes鈥�. The firm鈥檚 investment arm remains on course for an operating loss of up to 拢2m for the year due to the phasing of its schemes.