ENGINEERING group Amec yesterday upped expectations for full-year profits by five per cent after completing its exit from the construction sector under a radical overhaul.

The group, which employs more than 1,000 workers in the Tees Valley, said 2007 pre-tax profits were expected to come in at £110m, £5m more than originally forecast by analysts, as it unveiled better-than-expected interim results.

Amec, which is now focused on process engineering and project management, reported under- lying pre-tax profits from continuing operations up 127 per cent on last year, at £48.2m.

The group has undergone a big restructure which has seen it sell off its construction businesses, gaining proceeds of about £340m.

The firm now operates in the oil, gas and nuclear sectors. Its power and process division, which includes its industrial business based in Darlington, recorded a 35 per cent lift in revenue to £492.3m.

Amec said markets for all its key businesses are expected to remain strong for the rest of the year.

Chief executive Samir Brikho said: "These are strong results and demonstrate that we are delivering sustainable improvements in performance.

"All of our end markets are buoyant and I am confident we will deliver our margin targets of six per cent in 2008 and eight per cent in 2010.

"Amec is now well prepared for the next phase of its development and has an exciting future as a focused supplier of high- value consultancy, engineering and project management services to clients in the energy, power and process industry sectors."