Hanson up to £351m despite hit

BUILDING materials group Hanson beat market expectations with a 10.2% increase in profits before tax and exceptionals to £351m in the year to December despite a £160m hit from the sale of its Continental bricks business to the Germans.

However, chairman Christopher Collins is cautious about the current financial year, saying: 'It is particularly difficult to predict the outlook so early in the year.'

The shares rose 4 1/2p to 435p as ABN Amro set a target of 550p.

Tighter cost and margin controls helped boost earnings although the group is still worried about North America. Selling prices increased 2.7% last year which, combined with cost savings in its increasingly popular heritage brick operations, led to a margin improvement of 0.6%.