Building materials group Aggregate Industries is overjoyed at the Government's plans to invest £3 billion in road improvements.

The Leicestershire-based group stands to benefit from a major works programme that includes the £1 billion widening of the M6 between Birmingham and Manchester and a road tunnel to protect Stonehenge.

Aggregate said the projects contributed to its overall optimism as it also expected act-ivity in the UK construction sector to remain strong.

As well as supplying materials, Aggregate recently acquired the surfacing assets of Associated Asphalt.

Across its UK business, Aggregate said it had experienced strong trading and had returned to anticipated business levels after the Jubilee bank holiday and the World Cup impacted on its performance in the summer.

It said: "The outlook for the construction sector in the UK remains positive, despite slowing UK growth and a sluggish global economy."

Aggregate's US business has enjoyed mixed fortunes and "excellent" results from the northeast and north central operations were offset by a much weaker performance in Colorado.

While the economic outlook in the US remained uncertain, the company added state budgets were now clearer following mid-term elections.

Aggregate's financial year comes to a close at the end of this month and it said it expected results to be in line with market expectations.

It added: "Overall, the group's cash flow remains robust. We have an excellent management team and we remain confident of the future."