Connaught said its social housing division has already recorded more than £370 million of new orders since September.

The company said that it is performing in line with management expectations and had an 'excellent' start to the new financial year. Its compliance division and National Britannia are working closely together on integration plans, while maintaining strong growth in line with management expectations.

Chairman Mark Tincknell said: 'We have had a strong start to 2008, with an excellent order intake reflecting our market-leading position in the large but stable social housing sector.'

Connaught shares were up 7.5p, or 2.2% higher in early trade at 349 pence. Altium Securities analyst Ed Wright, who has a 'buy' rating on the stock, said that the compliance market is still expanding and that recent acquisitions offer good cross-selling potential.