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Construction and support services group Carillion has reported a 28 per cent rise in first-half underlying pre-tax profits.

In a statement the company confirmed that its underlying pre-tax profits climbed to £34.3 million in the six months to the end of June, up from £26.9 million for the same period in the previous year.

Carillion said that its order book now stands at £15.8 billion, while its pipeline of probable new orders has increased in value to some £2 billion.

Britain's second-biggest construction company added that its first-half performance had been buoyed by the acquisition of UK rival Mowlem, last year.

Company bosses said the successful integration of the Mowlem business had been achieved earlier than expected and was on track to deliver integration savings of £26 million a year.

"The successful integration of the Mowlem business has contributed to a strong first half performance," said Carillion chairman Philip Rogerson.

"With a positive overall outlook in our key markets, we expect to make further good progress in the second half of 2007 and deliver materially enhanced earnings in the full year," he added.

Carillion, which operates across eight principal UK markets including the building sector and rail and road markets, raised its interim dividend by 13 per cent, to 3.5p a share.

In a separate statement, the company confirmed that its joint venture in the Middle East had been appointed preferred bidder on various construction projects - valued at a total of £470 million.

Carillion said that the total value of the contracts to its company was £192 million.