Associated British Ports (ABP), which operates Southampton Docks, revealed today it is on course to post a year-end increase in turnover, following strong demand at its 23 UK ports.

The company, which employs 3,000 people in the UK and US, said trading had been buoyant across all of its main businesses.

Group turnover for the year to December 31 is expected to increase by eight per cent, while underlying profit was likely to be at the "upper end of current market expectations.''

The group said its strategy of disposing of non-core assets, which included selling the Southampton-based ferry and towage business Red Funnel Group earlier this month, was expected to generate profits alone of around £12 million.

It said today: "Business at the UK ports has continued to develop well, benefiting from the organisational changes put in place last year.''

Growth areas have included unit-load traffic, particularly in roll-on roll-off containers and vehicle imports and exports. Tonnages of oil have also increased, along with imports of coal and forest products.

The company, which runs ports at Grimsby, Hull, Cardiff and Plymouth, added that turnover and operating profit at its American ports, and its transport division Amports, were substantially ahead of last year.

ABP issued disappointing full-year figures last February.

Then, its pre-tax profit figure was down from £110.6 million to £32.8 million.