DUNDEE-based Bett Brothers emphasised its ambitions to expand its housebuilding and inns businesses yesterday, as it announced a 35% jump in interim pre-tax profits to #1.5m.

Both divisions contributed to the rise in profits for the six months to February 28, as did a halving of the interim interest charge to #197,000. It is thought a turnaround in Bett's Cheshire housebuilding operations played a significant part.

Profits from Bett's commercial property activities fell. The company said this division's contribution would be ''biased towards the second half''.

But commercial property's full-year contribution, and overall annual profits, are likely to be materially lower than in the 12 months to August last year. About #3m of profits from the sale of Thorpe Industrial Park, near Heathrow Airport, boosted Bett's overall pre-tax figure to #6.9m in its last full financial year.

Bett's stockbroker, Bell Lawrie White, yesterday raised its full-year pre-tax profits forecast from #4.25m to #4.75m and expects this to include about #1.5m of operating profits from

commercial property.

Stockbroker Sutherlands is looking for profits of between #5m and #5.5m in the current year.

Asked if Bett was looking for acquisitions in housebuilding, chief executive Ronnie Hanna replied: ''Yes, indeed. We are always looking at one or two.''

Bett, which said its interim gearing of 22% provided ''a strong platform to underwrite our expansion plans'', continued to search for new outlets for its inns business.

The number of homes completed by Bett in Scotland rose to 146, from 108 in the previous first half. The average selling price was #1000 lower at #91,000.

Bett's fledgling Cheshire operation completed 19 units, and the company said it expected to sell a total of more than 400 homes in the current financial year, compared with only 311 in the 12 months to last August.

Bett is raising its interim dividend 7.9% to 2.05p. The shares were unchanged at 161p yesterday.

FACT FILE

Interims19981997

Turnover#23.1m#16.0m

Pre-tax profit #1.51m #1.11m

EPS7.46p5.61p

Dividend2.05p1.90p