The company says it has made a good start to the new financial year with first quarter trading in-line with expectations and putting it on track to achieve its full year target.

The construction division has had a strong start, with a record level of revenue achieved in the first quarter.  The group says the market remains buoyant and order books remain at very healthy levels.

The housebuilding division has also made a satisfactory start to the year despite negative buyer sentiment and uncertainties in the mortgage lending market.

Reservations to the end of September are marginally fewer than the same period last year, but the order book is 4 per cent ahead of 2006.

The company says the fallout from Northern Rock has seen a marked reduction in the level of visitors to its housing developments, but says that selling prices and reservations are still holding up.