The chief executive of the West Country contractor and developer Midas Group has said the company plans to take advantage of the downturn by making acquisitions.

Alan Hope said he had a war chest of £35m and was looking for established businesses that would extend his company’s geographical coverage.

He said: “We’re looking in the Midlands, Thames Valley and the Home Counties. Alternatively, it may be someone that gives us access to new customers or frameworks in sectors such as retail, interiors or affordable housing.”

The group is looking to take advantage of its healthy balance sheet: pre-tax profit rose 38% to £5.9m on turnover of £210m in 2008.