But pre-tax profit slid to £15m from £25m the year before in the face of a turbulent market and unpredictability of material and labour prices.

As a result operating margins halved from around 10% to 4.6% last year.

The design and build contractor said it has strengthened its risk management protocols towards price stability, tender validity, inflation risk and project timelines, in response to recent market volatility.

Group Chief Executive Adam Quinn, who took over from now chairman Chris Benham last July, said: “We are very pleased to announce an exceptionally strong set of figures for 2022, particularly considering the turbulent market conditions we are currently experiencing.

“This solid financial performance is testament to our forward-thinking approach as a business and a reflection of the efforts of our all our employees and the value they bring to HG.

“As a board we have remained on track with our strategic plans.”

Quinn said that the second quarter of 2023, saw a more stable situation concerning cost inflation, and gross profit margins were set to be similar to or slightly above those achieved in 2022.

He said: “We continue to invest in our self-delivery capabilities which are instrumental in our successful management of costs and project risk.

“Having increased control over our supply chain sets us apart in the marketplace and has enabled us to unlock value in challenging schemes, adapt to market conditions and remain competitive despite significant price volatility.

“We are working through challenging times, but the investment decisions we have made in the past five years place us in a strong position to successfully navigate this turbulent period.”