CONSTRUCTION company and housebuilder Kier Group yesterday announced an increase in half-year pre-tax profits of almost 20 per cent.

The company, which has an office in West Cornforth, County Durham, said pre-tax profits rose 19.8 per cent to £28.4m for the six months to December 31.

Across its divisions, revenue at Kier's construction operations increased by 15.1 per cent.

Its support services business saw a 22.1 per cent rise, boosted by private finance initiative and local authority contracts.

The company's homes division reported marginal improvements in sales and operating profit.

William Kay, the managing director of Kier Northern, said: "Our emphasis on operating in, and contributing towards, the local economy means that we have been able to build our business in a sustainable way and serve our clients, both national and local, in a manner that we believe is unparalleled."