ENGINEERING services company Amec is upbeat about prospects for 2004 after posting a seven per cent rise in annual profits to £112.5m.

The company, which employs more than 1,000 people in the North-East, said there was continued market uncertainty, but it had started the year in good shape after completing a restructuring and a number of acquisitions and disposals.

The group is involved in rebuilding projects in Iraq as well as the rail and energy markets.

It said markets in 2002 and last year had been difficult and that the timing of major projects remained hard to predict. But it said business so far this year was up 50 per cent on the same time last year, with evidence of recovery in its key North American industrial markets.

Amec supplies design, project delivery and maintenance support services to the oil and gas, transport, industrial and infrastructure industries.

With annual revenues of about £5bn, it employs about 45,000 people.

Amec has North-East regional offices in Darlington and Wallsend.

Last year, Amec's Darlington operation strengthened its position as a provider of construction and engineering services in the region.

The company completed the first Marks & Spencer Lifestore project at Gateshead and two major transport interchange projects for the Tyne and Wear Passenger Transport Executive, also in Gateshead, and Four Lane Ends, Newcastle, with a combined value of £15m.

It completed more than £15m of work in the health sector and a similar valued contract for Hanro Group to design and build the second phase of the Citygate development, in Newcastle.

A joint venture project will also see it play a part in building an £11m treatment centre at the Queen Elizabeth Hospital, in Gateshead.