British support services and construction group Carillion posted a 10 percent rise in first-half profit driven by a surge in demand for public sector outsourcing as cash-strapped local authorities looked to cut costs.

The group, which maintains motorways, railways, military bases and telephone lines, said pretax profit increased to 72.5 million pounds ($119.6 million). House broker Collins Stewart had forecast 71.1 million pounds.

Carillion, which also operates in Canada and the Middle East, said its current order book in addition to probable orders stood at 19.4 billion pounds.

"With strong market positions and a record pipeline of contract opportunities, the group continues to target strong international growth and substantial growth in UK support services over the medium term," Chairman Philip Rogerson said in a statement on Wednesday.