Results posted today show revenue up 21% to £351m while pre-tax profit increased to £14.5m from £12m.

The firm said: “This strong H1 performance was driven primarily by an increase in highways maintenance on the back of new Government funding and a higher than anticipated spend by local authority customers, an increase in activity within AMP5-related contracts and a maiden contribution from Turriff, in the first half, following its successful integration.”

May Gurney has a forward order book of £1.5bn and is working on potential contract extensions of a further £1bn.

But the firm is wary about any future drop in highways maintenance spending which would result in cost cuts at the division.

It currently maintains roads for ten County Councils and 11 London Boroughs looking after 38,870 kms of the UK total of 285,000 kms of roads.

May Gurney said: “The business is well positioned to react appropriately in the event of a reduction in spending in our target markets, and our guidance continues to reflect a degree of uncertainty surrounding a potential reduction in highways maintenance activities in the coming year.”

Chief executive Philip Fellowes-Prynne said: “Whilst alert to the challenges in the economy, and the pressures on Government linked expenditure in particular, we believe that the essential nature of our services, our flexible approach, together with our solid balance sheet, position us well to continue to build upon the Group’s success.”

The firm also announced today that group finance director Matt Stevens is leaving the company next April.