Cement giant Blue Circle said it was looking forward to working with new parent Lafarge as it reported a 20 per cent jump in profits for the full-year.

Blue Circle was snapped up by Lafarge in January after a year-long pursuit.

Lafarge agreed to pay 495p a share in a deal to create the world's largest cement producer. It first offered 430p a share.

Blue Circle chief executive Rick Haythornthwaite said the group registered pre-tax profits of £325.4 million in year to December 31 before exceptionals.

He said the performance "underlined the strength" Blue Circle would bring to the new group.

He added: "The group is looking forward to working with Lafarge. There is now a recognition that a lot is possible as the world's number one."

Blue Circle saw strong growth in the UK last year, with operating profit before one-off costs rising to £106 million from £84.8 million the year before.

The group's Asian business was boosted by a 25 per cent increase in demand for cement in Malaysia, which helped Malayan Cement turn in an operating profit of £28.7 million, compared with £1.7 million in 1999.