But several under-performing projects, now completed, saw pre-tax  profit for 2013 slip by 20% to £16.1m.

Group chief executive Rick Willmott said: “Our work volumes and turnover continue to hold up well, while our reduced pre-tax profit reflects a small number of projects now completed that did not deliver the margins we had expected.

“We are seeing more opportunities across our industry owing to greater economic confidence and a stronger housing market and we have focused our skill-sets and resources accordingly.

He added: “Our frameworks and long-terms contracts continue to give us a robust pipeline of construction and support services work while our development business Regen, delivering both homes for sale and private rent, really ‘came of age’ in 2013 with a significant volume of development that will increase in 2014 and beyond.”

He said that Willmott Dixon’s forward order book stood at £2.05bn and 91% of  budgeted work had already been secured for 2014 by the first quarter.

Willmott warned that the industry now faced a fresh set of challenges from cost pressures and shortages.

“We’re coming out the other end of the prolonged recession and the pent-up demand we are seeing for capital projects means the key challenges we face alongside maintaining a pipeline of work is a growing pressure on material and trade prices, staff recruitment and supply chain capacity.

“These are key factors we will focus on managing this year as clients’ capital investment continues to gain momentum.”

Following a successful trial, Willmott Dixon will be introducing its voluntary EarlyPay scheme this month to its 650-strong list of category “A” suppliers.

Subcontractors will be charged 2% APR interest to get their money two weeks ahead of Willmott Dixon’s usual payment terms of 42 or 30 days.

The interest payments only apply to the “speeded-up” two week period.