Contractor Willmott Dixon is set to float its support services arm Inspace on the alternative investment market later this month, valuing the business at about 拢85m.

The flotation is part of its plan to focus on construction and development, especially in social housing. It will allow the company to raise extra capital to help with expansion and buy more land for development.

Colin Enticknap, who was appointed executive chairman of Inspace after 12 years as chief executive of Willmott Dixon, said the flotation on AIM was an 鈥渋nstrumental step in helping to unlock our growth plans鈥�.

鈥淲e want a strong balance sheet because a strong covenant is so important,鈥� he said.

Inspace was demerged from Willmott Dixon at the end of last year. It employs about 1000 people and turned over 拢107.3m in 2003 on the back of social housing. It made a pre-tax profit of 拢6.3m in the year to 31 December and had a 拢300m order book.

The Willmott and Dixon families are to get significant sums as a result of the flotation, but the company will retain a 7.5% long鈥搕erm stake.

Enticknap said that the operational side of the business would not change.