CONSTRUCTION group Kier saw profits nearly double in the second half of last year.

Overall pre-tax profits rose by more than 94 per cent to £31.5m. Turnover reached £816.1m, 12.3 per cent ahead of 2003. Its construction and services division has £1.82bn of work in its order book

John Dodds, chief executive, said: "The markets in construction have remained sound throughout the period, with both public sector expenditure and private sector demand contributing to our order books.

"Our homes division, in particular, had a strong result, taking advantage of an exceptional forward order book at July 1, 2004.

"This has contributed to a shift in the balance of profit generation between the first and the second halves of this financial year."

He said the group had seen a cooling in the housing market in the fourth quarter of last year, but since Christmas, visitor levels and reservations indicated that modest year-on-year sales growth would be achieved.

The group includes Kier Northern, in West Cornforth, near Sedgefield, County Durham, which last year won an £8.7m contract with the City of Sunderland NHS Trust.

It will demolish a postgraduate centre and build a five-storey development.

Kier Northern is also undertaking a £5m project for Broadacres Services Limited.