Revenue in the year to June rose 10% to £1.24bn driven by steady growth in infrastructure as the AMP7 water sector investment period gathered momentum.

Pre-tax profit halved to £5.4m due to £14m of exception costs relating to the purchase of contractor nmcn in October 2021 for a £1 and investment in a new cloud-based computing system.

But underlying group pre-exceptional profits were strongly ahead by 68% to £19m over the year.

Galliford Try also announced this morning that strong cash management had built average month-end cash up to £174m allowing headroom to launch a £15m share buyback programme.

Chief Executive Bill Hocking said: “Our commitment to robust risk management, careful contract selection and operational excellence continues to underpin our performance and prospects.

“The group is well capitalised and has a strong and selective order book, focused in our chosen and proven sectors. This has enabled us to significantly increase shareholder dividends and capital returns.”

He added: “Through our active engagement with our supply chain and disciplined approach to risk management, bidding and careful project management we have successfully managed and mitigated the challenges of supply shortages and inflation without any overall impact on trading or margin.”

Looking ahead, Hocking said: “We continue to see good demand across our core markets and anticipate continued progress in the new financial year, in line with our targets.”

Galliford Try has started the new financial year with 90% of targeted revenue secured for the next 12 months and around 66% in view for 2024.

The group’s order book edged up to £3.4bn (2021: £3.3bn), of which 91% is in the public and regulated sectors and 9% is in the private sector.