A 40% hike in house completions on margins up from 8% to 11.8% helped Galliford Try deliver group profits up 80% at £63m on sales ahead 17% at £1.5bn.

The group’s construction arm was hit by the downturn but managed to keep margins up above the 2% mark and its order book stable at £1.65bn in the year-ended June 30.

Chief executive Greg Fitzgerald said: “We continue to focus on margins and cash, accepting lower revenues as we turn away work with unrealistic margins or risk profiles.”

In September 2009, Galliford Try raised £126m through a rights issue pledging to double the size of its house building division by 2012 and targeting a significant increase in profits from building around 3,000 units a year mainly in the south of England.

Fitzgerald said: “We have achieved everything we set out to do and more.

“In the financial year, we delivered 3,039 completions and the Group achieved a profit before tax of £63.1m, ahead of the £60m we targeted in 2009, accompanied by a significant improvement in return on capital.

He added: “Construction had an encouraging year and met our expectations, with operating margins impacted less than anticipated and delivering a strong cash performance. We have won a number of important contracts cementing our position as a key infrastructure supplier to the UK utility sectors.

“Construction enjoys good levels of visibility having secured 82% of its projected workload for 2013 whilst maintaining its current order book at £1.65bn.

He added: “2013 will be one of the peak years for work in the water sector under the AMP5 frameworks, which will help offset lower activity in other construction markets.”