David Miles, Chief Executive, Mears Group, said: “We have become more aware this year of a material number of contracts held by competitors that are unsustainable either in terms of service delivery, financial viability or both.

“We are confident that, over the next 18 months, our patience will be rewarded and our differentiated model vindicated, as these contracts reach breaking point.”

He added: “This point is illustrated by our appointment by Sutton Housing Partnership, which we mobilised over a period of two days in late December 2014.”

The contract was awarded on an emergency one year basis after the exit of Rydon Maintenance.

The contract covers 6,000 homes in the London Borough of Sutton, delivering responsive repairs, voids and a planned maintenance programme.

Across the group pre-tax profits rose 7% to £42m on revenue down 3% at £839m in the year to December 2014.

The rise in profitability came from a faster turnaround than expected on former ex-Morrison contracts, acquired in 2013.

Miles said changes to affordable housing finance had delayed the number of bid opportunities coming to the market over the last year.

But he said that a backlog of contract opportunities would come out to tender this year.