Pre-tax profit at material and contracting group Aggregate Industries has been hit by the effect of the aggregates levy in the UK and bad weather in the USA.
Profit slipped 3%, to £40m, for the six months to 30 June.

The firm's results was also affected by the acquisition of road-surfacing contractor Associated Asphalt last year, as this operates on a lower margin than the rest of the group.

Aggregate Industries said the growth of the public infrastructure market would boost profitability for the second half of the year in the UK. Turnover for the period grew 8% to £670m.

Peter Tom, chief executive of Aggregate Industries, said: "The UK markets remain firm, with the strong flow of publicly-funded infrastructure and public works expected to continue. We expect the UK business to continue to improve profit this year."

Aggregate raised its dividend 10% to 1.13p a share to reflect confidence that it would increase profit in the second half of the year.