TRANSPORT, waste and industrial services group Hargreaves yesterday posted a 71 per cent surge in turnover as it pledged to expand.

The County Durham-based group, which has added more than 1,300 employees to its payroll over the past year, said organic growth and three key acquisitions helped push turnover to £265.3m.

And with its order books at record levels, Hargreaves Services said pre-tax profits in the year to May 31 had more than doubled to £8.6m, compared to £5.5m last year.

Looking ahead, chief executive Gordon Banham said the markets in which the group operates remained strong.

"Further consistent and profitable growth of the group is anticipated," he said.

"The group board remains committed to a policy of substantial and continued growth within the areas of its expertise. I am confident of being able to report continued growth across all companies and divisions in the future."

Over the past 12 months, Hargreaves has made a number of key acquisitions, including:

* The purchase of industrial services provider Norec Limited, in September last year, for £7.4m;

* The acquisition of the assets of Maltby Colliery from UK Coal, in February, for £31m;

* The acquisition of the business and assets of Simon Bulk Warehousing and Distribution in April, for £4.2m.

The integration of these businesses has pushed Hargreaves' workforce up from 585 people last year, to about 1,900 people. Up to 250 staff are based at its headquarters in Esh Winning, near Durham, where office space has recently had to be increased by 30 per cent.

Mr Banham said the company is still considering moving its head office to bigger premises, but pledged his commitment to the North-East. He spoke of plans to become a "champion" in the region, like neighbouring plc's Sage, Northern Rock and Greggs.

"We floated on AIM (the Alternative Investment Market) two years ago and we are building a business with solid foundations that is going to be around in the North-East for many years to come," he said.

Shares in Hargreaves Services have increased from 434p last September to a high of 644p in July. They closed last night down 2.5p at 632.5p.