Laing is back in the black after transforming itself from a traditional contractor to a PFI investment specialist.
The support services group posted a 2003 pre-tax profit of £21m – a contrast to the £14m loss it made in 2003. Turnover fell to £481m, more than £260m less than the previous year.

Laing's shareprice has almost reached the tough share price targets set for it by analysts this time last year. Michael Donnelly, an analyst at Bridgewell Securities, said last March that the shares ought to rise about 40% to more than 200p over the following 12 months. It closed on Monday at 198p, a year-high.

Donnelly said that by 2004 the market would better understand Laing's new identity.

In his statement, chairman Bill Forrester said: "Our programme of disposing of non-core operations is largely complete, and our sector focus on public service accommodation, roads and rail has proved to be a platform for significant growth in activity."

In the past year the group has received the final £215m from its sale of Laing Homes and it disposed of its Australian Airports interests for a profit of £5m.

Forrester said that the development of the secondary PFI market, in which equity stakes are sold on to third parties, had developed in the second half of 2003, and would boost future profits.

He added: "Bidding activity, expanded in 2002, has led to a significant growth in preferred bidder positions and the identified pipeline of future opportunities in each of our key sectors."