CONSTRUCTION group Hill and Smith Holdings announced record results yesterday as profits soared by 70 per cent to £5.3m.

The transport, building and construction group, which owns Durham company Birtley Building Products, said an increase in public sector projects had contributed to the improved interim results.

The group announced a dividend rise, from 2.15p last year to 2p, an increase of 4.7 per cent. The company's share price has significantly outperformed the FT All Share Index in recent years.

Hill and Smith's transport infrastructure products include safety fencing, temporary crash barriers, wire rope and street lighting.

It has benefited from a string of major contracts, including the replacement of street lighting in Sunderland and other major UK cities.

Chief executive David Grove said: "The increased spending on public sector projects, which is likely to be sustained, has created real opportunities for us and will continue to do so."