But the firm, which nudged up profits from £500,000 to £800,000 last year, warned that there was still intense pressure on margins in the fit-out and refurbishment sector.

Chairman Jim Martin, said: “During the year we have had significant successes in sectors with real opportunities for potential growth including commercial, education, healthcare and carbon abatement.

“Market conditions remain extremely challenging and show few signs of an imminent recovery.”

“In such uncertain times it is difficult to predict the outcome for 2013 particularly this early in the year, and while we are encouraged by a 10% improvement in our order book, there has been a reduction in order intake in recent weeks.

He added: “The banking sector continues to be a significant part of our business and has a strong weighting towards the second half of the year.

“We continue to invest in new markets for long term growth and are pleased with our early progress. This mix of work, combined with increased  competition in our market, is however putting significant pressure on margins in the short term.”

Styles & Wood secured its third project with Chesterfield Royal Hospital NHS Foundation Trust strengthening its track record in the market.

It also entered into a strategic partnering arrangement with Consensus Capital Private Equity to launch a fully-funded Solar PV installation service.

In the year to 31 December 2012 turnover fell 3% to £98m. This saw net cash fall back from £6.7m to £3.6m over the year. Operating profits improved, rising 20% to £2.3m.