CONSTRUCTION firm Taylor Woodrow has predicted it would become a "major force" in the housing sector following the acquisition of rival Bryant Homes.

The company, which has pursued a major shift away from construction projects, recorded a significant increase in pre-tax profits for the year to December 31.

It said the takeover of Bryant - at a cost of just under £600m - was progressing "with speed and efficiency".

The merger of the two housing operations, likely to be completed over the next six months, will create the country's fourth largest housebuilder.

Earlier this year Taylor Woodrow pulled out of the development of Darlington Football Club's £15m stadium, at Neasham Road.

Keith Egerton, chief executive, said: "With the acquisition of Bryant, Taylor Woodrow now has a balanced international housing business. We will be a powerful new force in UK home building."

During the last year, Woodrow's UK housebuilding operation posted operating profits of £43.6m, compared to £32.4m a year earlier.

The number of completions rose 12 per cent to 2,252, while the average selling price of a Woodrow built home rose to £162,800 from £134,200 in 1999.

Overall, pre-tax profits at the group rose 64 per cent to £201.5m, although the figure was buoyed by £47.9m from the disposal of its Greenham businesses. The improvement came despite a 27 per cent fall in turnover from the construction business.