Amec saw its pre-tax profits rise by a quarter last year after securing a major acquisition.

Amec, which provides services and engineering solutions, says the strength of the European and British economy has helped it make an encouraging start to 2001.

It is also reaping the benefits of its decision to buy Agra, the Canadian engineering and technology group for £230 million.

Last year, Amec's pre-tax profits rose 25 per cent to £98.9 million. Last year sales in oil and gas were about £650 million and accounted for about 20 per cent of turnover.

Amec owns 46 per cent of SPIE SA, the international electrical engineering, infrastructure and construction services company based in France, and has an option to buy the balance of SPIE.

Together, Amec and SPIE employ 50,000 people in 40 countries with an annual turnover of more than £5 billion.

Chairman Sydney Gillibrand said: "In addition to achieving excellent results, 2000 was also a year of intensive corporate activity for Amec, with the acquisition and successful integration of AGRA and the strengthening of our partnership with SPIE. The business is set on a very solid footing for the future."

Chief executive Peter Mason added: "We remain focused on our task of generating value by continuing to expand Amec's base of recurring revenues gained from higher value services and projects for long-term clients.

"We see opportunities for good growth from both service and project activities, continued reliable performance from property development and the prospect of achieving yet greater value from our investment in SPIE and public/private partnerships."

Earnings per share increased 22 per cent to 24.7p.