Bradford-based construction company Totty has been sold in a deal worth £23.3 million.

The sale, which went ahead after shareholders approved it at a recent meeting, means Totty no longer belongs to Leeds-based Peterhouse.

Totty, part of Propencity plc, the former construction division of Peterhouse, has been sold to Newco.

Newco is a newly incorporated company which was set up by the Propencity management team.

Newco paid £18 million for Propencity, with other money going to pay off debts. Philip Brierley, managing director at Totty and part of the Newco team, has resigned from his position as a Peterhouse director as part of the deal.

Peterhouse sold Propencity to concentrate on its support services operations. A Peterhouse spokesman said: "The construction operations of Peterhouse were a significant source of revenue and earnings, representing 64 per cent of revenue and 37 per cent of earnings in the year ending January 4, 1999.

"While the construction operations initially generated cash flows which were used to invest in growing the rest of the group, they returned modest profit margins and therefore the board implemented a strategy which focused on expanding the group's higher margin support services operations.

""In recent years, the board has successfully pursued its strategy of expanding its support services operations through a combination of organic growth and carefully selected acquisitions. These operations, particularly in telecommunications, power and rail infrastructure maintenance provide the Peterhouse Group with good earnings and more predictable earnings."

In September Totty announced another record financial year.

The firm, which recently announced it had completed £100 million of work for Whitbread, reported pre-tax profits of £4.54 million in its results for the year ending December 2001. The business, established in 1864 by William Totty, employs more than 300 people.

It relocated from its head office in Greengates to purpose-built premises at Woodlands Park in 2001. Clients include Persimmon Homes and City Lofts, as well as a variety of universities, health trusts and private firms.