West Midlands contractor Thomas Vale has announced an 18% increase in pre-tax profit to £1.62m for the six months to 30 September 2008.

The figure was up on £1.36m last year and turnover rose by 20% from £91.4m to £109.5m.

On 30 September 2008 the group, which employs 850 staff, had a bank balance of £18m and no borrowings.

Mike Wallis, chairman, said: “We are confident our full-year forecast will be met as the secured workload is already in place for the year. Our positive cash balances and zero borrowing put us in an excellent position to grow the business organically or even consider acquisitions as opportunities present themselves.”

In the year to 31 March 2008, the firm reported pre-tax profit of £3.1m on turnover of £195m.