Contractor Kier last week reached financial close on two PFI projects, together worth £70m, before its interim results on Monday.
Kier completed deals on a diagnosis and treatment centre at Hitchingbrooke, Cambridgeshire, and eight schools in Waltham Forest, east London.

It is also preferred bidder at Oldham Library and has been shortlisted for schools in Sheffield.

In the six months to 31 December, Kier reported a pre-tax profit of £16m, an increase of 37.3% on the same period in 2002. Turnover rose £3m to £727m.

Finance director Deena Mattar said that Kier wants to beef up its housing arm and was keen to make acquisitions in that sector, although nothing was in the pipeline. Earlier this year, Kier bought Tudor Homes of Lincolnshire for £15.4m.

Kier's housing arm built 562 homes in the first six months, an increase of 12% on the previous year. Mattar said: "We are particularly interested in housing, but we certainly would not acquire any construction businesses."

John Dodds, chief executive at Kier, said that its order books were higher than the previous year.

He said: "Our order books remain strong and significant opportunities are available in all of our market places, which we believe will lead to continued growth."