CONSTRUCTION and support services group John Mowlem has made a good start to its financial year.

The group, which has a strong regional base on Teesside, saw pre-tax profits in the six months to June 30 increase by 21 per cent to £15m.

The group has attributed this success to the strength, length and diversity of its £2bn order book.

On Teesside, Mowlem's building division is constructing retail units and a two- storey mall entrance at the Hill Street Shopping Centre, in Middlesbrough, for Sun Alliance and London Assurance.

Work is also under way on two industrial units in Hartlepool.

The group's Middlesbrough-based Mowlem Infrastructure Services (MIS) company BKE, continued to have a strong presence in the region, specialising in the field of engineering. In addition, MIS is carrying out work on the £8.1m Alnwick bypass in Northumberland as well as work on the A189 spine road for Northumberland County Council.

Mowlem chief executive, John Gains, said: "We believe that the group will continue to make good progress towards the strategic goals that were set two and a half years ago.

"The significant improvement in our ability to service growth sectors should enable us to exploit fully our presence in a range of markets such as retail, infrastructure and public services," he said.

"Although the outlook for the second half of the year remains uncertain in some markets, we believe we are well positioned to exploit opportunities and expect to make further progress in the second half of 2002 and beyond."