A CONSTRUCTION and development business in Malton, which is undertaking a £13 million student accommodation project in York, today announced record profits.

The £38.79 million turnover S Harrison Group Ltd earned pre-tax profits of £6.94 million in 2006 and has a full construction order book, with projects in the pipeline for this year right across Yorkshire and beyond.

As exclusively reported in The Press on Wednesday, Harrison is involved in a feasibility study preparing the way for a top-flight multi-million hotel to be built in the grounds of Castle Howard, near Malton At the end of the year, shareholders' funds stood at £13.79 million with enough cash reserves to invest in new development opportunities.

Planning approval for the construction by Harrison of a £13 million 272-bed student accommodation facility on the site of a former bus depot at Navigation Road, York, marks the beginning of firm's partnership with the country's newest university, York St John.

The Harrison Group was heavily involved in providing offices at York Science Park in a partnership with the University of York, the Science Park and P&O Developments.

With the development company's flagship £100 million scheme in Lichfield winning planning approval at the turn of the year and a full order book for the construction business, chairman Martyn Harrison painted a bright picture of the Group's future.

He said: "Harrison Construction is now firmly established as one of the major players in the region.

"In Sheffield alone, the construction forward order book through 2007/8 stands at over £50 million and the company is involved in a number of major warehousing, office and residential projects throughout Yorkshire, working in partnership with organisations such as Keyland Developments and AMEC.

"Most of the new contracts secured are now coming from sources other than the group's developments business."

In Harrison Developments, 2006 saw the completion and sale of the group's interest in Washington Square, Workington's £50 million town centre redevelopment scheme, driven by Harrison in partnership with Allerdale Council and the North West Development Agency.

Planning approval for Harrison's £100 million mixed use, retail, leisure and office development - Friarsgate - in Lichfield, marked another stage in the Group's development portfolio.

Mr Harrison said: "Diversity has been one of the major strengths of our developments business, and will continue to be a driving factor as the business grows.

"Residential developments, notably in Newcastle and Sheffield, continue to sell off- plan, reflecting our risk-averse approach and the continuing demand for well-located, well-designed and well-constructed schemes."

Office accommodation remains an important part of Harrison's development arm, with brownfield site projects under way in Escrick and Sheffield.

There are also prestigious refurbishment schemes like Kelham House, in Sheffield, helping to revitalise one of the historic industrial areas of the city.

He said: "Building on a platform of success, and with as strong a team as we have ever had, we confidently expect to see another profitable year ahead as the two Harrison companies reduce their interdependence, and increasingly develop their own successful autonomous businesses, while maintaining the core values which have been the cornerstone of the group's success to date."