Ground engineering company Keller Group yesterday said that its profits for the year would beat analysts' expectations.

Keller, whose West Midland operations include a foundation support wing employing 200 people near Coventry, said all four of its geographic regions had higher order book volumes than at the same time last year.

"We have continued to see strong overall trading and, accordingly, the board believes that the group's results for the year will be slightly ahead of the top end of the range of market expectations," it said in a statement.

Analysts had expected Keller, which prepares the ground for major construction projects, to post full year pre-tax profits of between £89.2 million and £96.7 million.

Shares in the firm, which have slumped roughly 40 per cent in the last two months, rose in early trading before falling back.

Keller added the costs of selling its loss-making Makers business were still expected to be less than £10 million.

Chief executive Justin Atkinson said: "2007 will be another excellent year for Keller and our strong order book leaves us well placed for 2008."

Panmure Gordon analyst Andy Brown said earnings would be upgraded.

"We would not expect to significantly change our 2008 forecasts, but do see them being nudged up," he added.

Meanwhile, Midland-based powered access equipment rental services provider Lavendon Group said in a statement yesterday that its performance during 2007 had been "strong" and, as with Keller, results were likely to exceed expectations.

The group, which has outlets throughout the UK, added it remained confident of making further "significant" progress in 2008.

Lavendon said it had traded strongly in the second half, enabling revenues for the first 11 months to increase by 49 per cent compared with the same period last year.

The performance was boosted by acquisitions and organic growth and the firm said that operating margins had also improved considerably.

Revenues from Germany rose by 123 per cent, while growth in its Middle East operations was also strong, reflecting the area's buoyant construction sector. The only disappointment was in France where revenues declined by seven per cent.

"The group's performance during 2007 has been strong, and is set to be ahead of the board's earlier expectations," it said in a statement.

"We are encouraged by the momentum we are carrying into next year and remain confident that the group will make further significant progress in 2008."

Recruiter Harvey Nash Group said it was confident of delivering its full-year results in line with its expectations, adding that turnover for the three months to October 31 rose 28 per cent.

The company said trading cash flows continued to be strong and that it had reduced its short-term overdraft facility by 50 per cent due to the strong cash generation. It said it intended to repay its term loan in full, one year early, by January 31.

The group also said it had extended its working capital facilities in Europe and that all its acquisitions made during the year were performing in line with expectations.

The company expects to announce its preliminary results for the year to January 31 on April 17.

Shares gained 20.5p to 661p yesterday.