A SHARP new image is being promoted by F J C Lilley in its annual

report issued yesterday. Shareholder approval is being sought to change

the name, dropping the initial letters in favour of Lilley plc, which

chairman Mr Lewis Robertson says will recognise a complete renewal.

''The group is fit and profitable; more than that it is well into a

phase of renewed growth,'' he comments. ''This is based on the expansion

of existing sound operations, and on acquisitions and other developments

made possible by the injection of vigorous new management and fresh

capital resources.''

With the order book standing at #242m at the end of February, Lilley

is very confident. It is particularly happy to have won the design and

construction contract for modernisation of Glasgow's McLellan Galleries,

and its involvement in the Hong Kong harbour crossing which it is

completing six months ahead of schedule.

Mr Robertson points out that US interests are no longer a burden on

the rest of the group, and indeed that the benefits of accumulated

claims are beginning to come through.

In his first review as chief executive, Mr Robert Rankin says that a

five-part strategy for growth and diversification has been developed,

which will improve profit and earnings performance.

''Our objective is clearcut,'' he asserts.''We intend a broadly-based

Lilley to occupy a position of strength in the construction and

development sector.''

Organic growth is given as the first priority, to expand UK

construction businesses and undertake contracts of substantially greater

value. And to balance that growth it is intended to diversify,

concentrating on the higher margin sectors of house-building and

property development.