The group, which turnover over £334m in the year ending September, has set its sights on growing to £500m.

Chairman Roy Harrison said: “It remains the board’s strategy to grow the business, both organically and by selective acquisitions, developing Renew’s position as a leading medium sized engineering support services group.

“The Board’s ambition is to grow Group revenue to over £500m, an achievement which continues to be likely to require further acquisitions.

He added  that the firm also believed it could increase its engineering services business operating margins to 5% over the next three years while maintaining Specialist Building performance in line with that currently being achieved.”

Renew bought Welsh civil engineering contractor Lewis in August for £8.2m.

Lewis turns over £25m a year and delivers an operating profit margin of around 5%. It is a well respected brand in its region and market with clients including Wessex Water and Dŵr Cymru Welsh Water.

Harrison said the acquisition paid for from sales of land holdings in Rugby would be both cash generative and boost margins at the engineering services division, which now accounts for 70% of the Renew business.

Pre-tax profits over the year grew 27% to £10.7m on turnover flat at £335m. Engineering services revenue rose 9%, including organic growth of 6%, to £232m.