Morgan Sindall has shrugged off worries about the commercial construction sector by reporting a 21% rise in annual earnings.

Pre-tax profit came in at £57.6 million for the year to December 2007 on 41% higher revenues of £2.1 billion.

The company's forward order book started 2008 at £4.3 billion, a sharp rise on £3.3 billion reported a year earlier.

Around 70% of earnings come from outside London. The Capital is currently facing a slowdown in demand for new commercial construction projects.

Morgan Sindall is targeting larger projects, typically over £20 million, to maintain its performance levels.

The latest results have been boosted by strong public sector spending on education and health facilities.

Shares in the company had risen 9% to £10.99 by Tuesday lunchtime.