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Morgan Sindall kicked off the results season by breaking the 拢2bn turnover barrier and beating City expectations with record full-year figures to the year ended 31 December 2007.

It posted pre-tax profit of 拢57.6m (2006: 拢47.6m) on turnover of 拢2.1bn (拢1.5bn).

John Morgan, executive chairman, said: 鈥淥ur business strategy has proved highly successful in helping us achieve record preliminary results, with all operating divisions delivering impressive profit growth.鈥�

Morgan said half of the turnover and profit growth came from the acquisition of Amec鈥檚 developments and project services divisions for 拢26m last July and the other half was achieved through organic growth.

He said: 鈥淭he businesses we acquired last year have been substantially integrated and have extended our capabilities in construction, infrastructure services and urban regeneration.鈥�

But he acknowledged some areas would suffer: 鈥淲e have a housebuilding exposure with Lovell and open market sales are slowing down, no doubt.鈥�

Turnover at the affordable housing division fell from 拢404m in 2006 to 拢398m, though margins rose to 6.4% and the order book was up from 拢1.4bn to 拢1.5bn.

The fit-out division performed strongly. Turnover rose from 拢426m to 拢492m and operating profit increased from 拢22.6m last year to 拢25.9m. The group said it was 鈥渉olding up amid economic uncertainty鈥� but Alastair Stewart, analyst at Dresdner Kleinwort, said a downturn in office building would hit Morgan Sindall鈥檚 fit-out volumes in 2009.

The group had a forward order book of 拢4.3bn at the start of 2008, up from 拢3.3bn last year.