Bristol contractor Midas plans to create two divisions to handle its retail and fit-out operations.
Chief executive Steve Hindley said the businesses, now part of the firm's construction arm, may be spun off as separate divisions if they continue to grow.

He said: "We are keen to expand our interiors brand and we may make it a separate division. Our retail business has also expanded in the past 18 months. We are confident this will continue." The group has development, property services and construction divisions as well as restoration and leisure brands.

Hindley made his comments as Midas revealed bumper results for the year to 30 April. Pre-tax profit rose 66% to £2.5m and turnover increased 53% to £115m.

The group has grown steadily since a management team, headed by Hindley, took control in 1998. Turnover has risen from less than £40m in 1999 and profit has almost quintupled.

Hindley said margins had improved to 2.2% in the last financial year but he was aiming for 3% this year. He said: "Three per cent is the minimum range the industry should reach and 5% should be the typical margin."

Midas' order book for this year stands at £112m and Hindley expects turnover to reach £150m. A growing percentage of the group's work is now partnered and Hindley is keen to see this continue. Midas has long-term deals with Marks & Spencer, J Sainsbury, Tesco, Safeway and Somerfield.

He said: "Long-term clients are easier to get negotiated work with compared with the one-off client. Clients need to realise that they make more savings through the partnering approach and long-term relationships than tendering."