The UK’s largest independent engineering and infrastructure services group hiked pretax profit 47% to £26m in the year to February as turnover rose 7% to £707m.

The business also increased headcount by 5% to 3,648 employees and recruited more than 55 apprentices as it geared up for rising demand across power, defence, rail, healthcare and water markets.

But Bailey said the battle for skilled workers in the sector was intensifying. This has prompted a review of pay and benefits at the firm to ensure it remains competitive in attracting and retaining talent needed to support long-term growth.

The strong results mark the first full year under NG Bailey’s Journey to 2030 strategy, which has reorganised the group into five business streams spanning Engineering, Facilities Services, Low Carbon, Freedom and IT Services.

Electricity infrastructure arm Freedom was again the growth engine of the business, delivering around 50% sales growth as distribution network operators ramped up investment and privately funded grid connections work accelerated, particularly for data centres.

The group’s order book climbed 6% to a record £1.7bn while cash and investments rose by more than a quarter to £116m.

Engineering also delivered improved profitability after tightening risk controls and becoming more selective about the projects it pursues.

NG Bailey has already accelerated its push into another major growth market through the March acquisition of Engineering Solutions Group and its main trading business, ECS Engineering Services.

The deal gives the group an immediate foothold in the regulated water sector ahead of the AMP8 investment cycle and broadens the capabilities of its Built Environment division.

Chief executive Jonathan Stockton said: “We’ve continued to deliver a strong financial performance, whilst reinvesting in the business in both digitalisation and new technology solutions which will ensure we remain at the forefront of the industry.”

He added: “Our strong, diversified order book, long-term client relationships and reputation within the industry for delivery excellence mean we remain in a strong position to navigate uncertainty.”