AN affordable housing specialist has hailed its projects in the North-East as a major factor in its record annual results.

Keepmoat, which operates in the region through its Frank Haslam Milan and Haslam Homes divisions, saw its profits rise more than 25 per cent, from £28m to £35m, with turnover also soaring 13.6 per cent to £533m.

The company, which has a target turnover of £1bn within three years, said its contracts in the North-East - including a multi-million-pound care home in North Ormesby, on Teesside, and a scheme involving 2,000 homes in Derwentside - had been significant in its strong performance. David Blunt, chief executive of Keepmoat, which is based in Doncaster, said the region was an important part of its national operation, which employs 3,000 people.

"Our financial performance remains strong, as we continue our rapid and sustained growth, with turnover reaching in excess of £500m, and our forward order book now holding at a level of £3bn," he said.

"We will continue to build upon this expertise and capacity in the future to ensure we maintain our track record of satisfying our customers' needs, which gives all of us increasing confidence that we can achieve our target of becoming a £1bn turnover business."