Wolverhampton-based construction services giant Carillion has announced a surge in pre-tax profits today and is looking to cash in on government spending cuts.

The group, which employs 600 people at its headquarters in the city, also aims to win billions of pounds worth of work in the Middle East and Canada.

It already maintains military bases, telephone lines and thousands of miles of roads through its support services operation.

Total revenue for the six months to June 30 came in at £2.5billion, with pre-tax profits jumping 17 per cent to £58.8million.

Chief executive John McDonough said: “We can help the government to get these efficiencies and savings through.

“We can do the job for them – that is our business.”

New public sector contracts worth £30billion a year could emerge as local councils are forced to outsource services to cut costs, bringing in one company to deliver a wide range of services.

He said: “Already in Wolverhampton we are leading the £370 million Building Schools for the Future scheme with more than 20 new schools, as well as winning the roads maintenance contract.”

Carillion plans to double business in both the Middle East – targeting Abu Dhabi, Oman and Qatar in particular – and Canada to £1billion over the next three to five years.

Despite challenging market conditions, the group secured more than £3billion of new orders during the first half of this year, with the order book rocketing to just under £19billion.

Philip Rogerson, chairman, added: “Carillion has continued to perform well in the first half of 2010 despite challenging market conditions in the UK.

“With a well-balanced and resilient UK and international business mix, strong revenue visibility and good positions in market sectors where we have substantial pipelines of contract opportunities.

“We expect to make further progress in the second half of 2010 in line with market expectations.”