Both the infrastructure and property services businesses significantly improved margins over the year to 31 March 2016.

But overall group margin slid from 2% to just under 1% after settlement of a small number of problem contracts.

Over the year strong growth in education work helped to lift group turnover by just over 10% to £342m. This saw average staff numbers also rise by a similar margin to 877 employees.

Highways and rail accounted for around £120m of revenue, with affordable new homes and maintenance contributing £70m. The balance was made up by the building division across commercial, education and healthcare.

Andy Steele, group chief executive, said: “We are currently finalising our latest forecast, which takes into account known changes since we set our budget in early 2016.

“We remain in a strong position, both in terms of cash and profit, and expect to maintain our budgeted profit for 2016/17.”

Osborne’s secured 12-month order book at year end was up 9% to £264m, predominantly from rail and highways frameworks. The total secured order book also increased 4% to £445m.

Steele said that the outcome of the Brexit referendum would undoubtedly impact the property and construction industries over the next few years

He said: “Ahead lay some interesting and challenging times.

“While I do not expect any significant changes for 2016/17 I do believe that where there is change, there is also opportunity.

“I am confident that we are well positioned to make the most of those emerging opportunities which come our way.

“The Osborne Group continues to look at the different ways to complement its existing portfolio of companies.”