Dean & Dyball is to open an office in Bagshot, Surrey, further expanding its business in the South-east
The branch will have a staff of up to 20 people and is expected to have a turnover of £10m in 2005.

Dean & Dyball is a private contractor based in Hampshire, but its seven offices undertake work throughout southern England, Wales and the Midlands.

Adrian Dyball, chief executive of the firm, said: "We're setting the office up this year. It will cover south-west London and the Home Counties."

Dyball made his comments after the firm had disclosed its results for the 12 months to 30 September. Pre-tax profit was £2.7m, an increase of £1.7m. Turnover increased 11% to £155m.

Dyball said: "Dean & Dyball Construction has continued to improve both in profitability and turnover across our key market sectors of building, civil engineering and rail, and all our regions."

He added: "I am confident that this performance will be sustained in the year ahead and by September 2004 we will be close to a turnover of £200m and showing further improvements in our profit margin."

Projected pre-tax profit for 2004 is £3m, up from a figure of less than £300,000 in 2001. The company has a cash balance of £10.5m, up from £8.2m in September 2002.

Dean & Dyball has continued to improve both in profitability and turnover

Chief executive Adrian Dyball

Despite this, Dyball ruled out any acquisitions. He said: "We are going to keep growing the business organically."

Dean & Dyball has been working on a £11m training college for the Royal National Lifeboat Institution in Poole, Dorset. It is also building a £6m sea survival centre in Poole.

In addition, it is designing and building three mental health units in Salisbury, Wiltshire. This contract is worth £14m.