The property services arm of outsourcing giant Capita made a pre-tax profit of £4.3m on turnover of £38m in the year to 31 December 1998.

Group finance director Gordon Hurst said Capita's property services businesses had made good progress during the year.

He said: "We've been very pleased with the division. We're beginning to do a reasonable amount of work in eastern Europe and our Cardiff office has won a number of commissions.

"Our London-based architecture design business has also picked up a number of contracts to design remand centres from the prison service."

Capita has also done well in the railway property market, working on 84 station regeneration projects for Railtrack, including the £50m redevelopment of Paddington Station and work with London Underground.

Capita reorganised its five property businesses into one operating division known as Capita Property Services late last year.

The five firms include quantity surveyor, project manager and building surveyor Capita Beard Dove; civil, structural and engineering design firm Capita Greatorex; Tozer Capita, which specialises in quantity and building surveying and project management; and architectural design services business Capita EC.

The division, which began operating on 1 January, is headed by managing director Steve Morris, former head of Capita Beard Dove's northern region.

Capita announced a 48% rise in pre-tax profit to £27.1m on turnover up 38% to £238m.

Capita's services division last year won the £40m, seven-year contract to run the DETR's Constructionline database of approved construction contractors.