KIER Group has lifted revenue by more than 50 per cent to £3 billion following a near full-year contribution from services company May Gurney, which it acquired for £221 million last year.

Kier, the integrated construction, property and services group, reported underlying pre-tax profits of £73.1 million for the year ended June 30, up 54 per cent on last year.

This excluded accountancy adjustments of £42 million related to contract rights and acquisition activity.

The results reflected the continuing growth at Kier Construction, the group's operation in Scotland and the north-east of England, which has reported a strong pipeline of public and private sector work.

Brian McQuade, managing director of Kier Construction, said: "The construction sector has shown increased buoyancy in recent months and this is reflected in our business where we have demonstrated sustainable growth this year.

"We have secured significant new contracts in Scotland and have a strong order book and a healthy cash balance."

Gordon Reid, business development manager for Kier in Scotland, revealed it is aiming to boost the headcount at the division to 160 from 145 over the next two months to cope with the increasing workload.

The recruitment will focus on middle managers, senior commercial staff, and construction project managers.

Mr Reid said: "That's basically to cope with the pipeline we have been successful in securing and that we are chasing at the moment."

Projects currently on the books of Kier Construction, which is the dominant part of Kier in Scotland, include phase two of the extension of Robert Gordon University in Aberdeen, a project worth £9.5m, and a £45m extension of Glasgow Fort with British Land. Marks & Spencer will be the site's anchor tenant.

Kier is also a major player active in school construction, with current contracts including a £35m project to build an education campus in East Ayrshire Council, and £40m education campus for North Ayrshire Council.

The Kilmarnock campus will bring together Kilmarnock Academy, James Hamilton Academy, and a primary school.

Mr Reid said: "About 18 months, two years ago, Kier made a conscious decision to position itself on various local authority frameworks.

"What that does is give us a relatively defined pipeline of work over the next four or five years, to give us the financial security and stability to increase headcount and grow our business."

Kier yesterday proposed a six per cent increase in the full year dividend to 72.0p.

Shares in Kier closed up 44p at 1718p.