P&O's comments came after reporting half year pretax profits of 138.0 million pounds ($230.6 million) versus 123.1 million pounds last year, after accounting for restructuring costs. Stripping out those charges, underlying profits were 151.7 million pounds versus 131.2 million.

Chairman Lord Sterling said in the results statement: ``This has been an encouraging first half. The economic uncertainties in some countries have inevitably had an effect on certain parts of the group, but the main sources of our earnings remain robust. The overall outlook continues to be positive.''

On current trading, the group said P&O Cruises had enjoyed strong trading, especially in the US Cruises' operating profits rose by 25 per cent even though total capacitywas up by just two per cent. Yields continued to improve, together with cost efficiencies as new ships come on line. The UK performance was up on last year, but the Australian ship had a poor start.

P&O Ferries reported a good first half, with cost savings kicking in. But the P&O Australia businesses saw operating profits hit by sterling strength versus the Australian dollar

The Bovis Construction Group saw profits up 40 per cent. The group reported that British and US markets remained strong and levels of work secured by the company were at record levels. Profits from property were also ahead, buttressed by strong economic conditions in the US market and in the UK earlier this year.

Group turnover was 3.13 billion pounds in the six months ended June 30, versus 2.88 billion last year. The dividend payout was 13.94 pence per share, to be paid in April next year.