Delays in completing contracts hit construction group Morgan Sindall (LON:MGNS) as figures showed a slowdown in the industry in the UK.
Morgan said poor performance of older, lower-margin contracts in London and southern England had continued to affect its construction and infrastructure division.
The company was completing the contracts at a slower rate than expected, which would hold back the division's performance in the second half.
However, Morgan said its office fit-out business had increased profits by 89% to £10.4mln, with a good second half anticipated.
Its affordable housing division, which owns Lovell, reduced losses and its urban regeneration arm lifted operating profit to £5mln.
Morgan held its interim dividend at 12p.
Chief executive John Morgan said: "The group remains on track to deliver results for the full year in line with the board's expectations and the outlook for 2016 and beyond remains unchanged."
Meanwhile, figures from research group Markit and the Chartered Institute of Purchasing & Supply showed UK construction output growth slowed in July amid a weaker rise in housing activity.
But there was slightly more upbeat news from building society Nationwide, which showed house prices rising by a relatively modest 0.4% month-on-month in July after a surprise dip of 0.2% in June.