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Norfolk Group Limited (ASX:NFK) has generated a net profit of $5.6 million for the first half of its 2013 financial year, down from $9.2 million the year before.



The engineering company took in total revenue of $507 million for the period.



CEO Glenn Wallace says margins were impacted by cost increases associated with project slow downs and delays, as well as inconsistent demand for services.



Mr Wallace says Norfolk has taken steps to adapt to current market conditions and is confident of achieving lower costs and efficiencies.



Norfolk will pay an unfranked interim dividend of 1 cent per share.