The construction arm of the family-owned group reported pre-tax profit ahead 31% to £3m for the year to 31 December 2025, while turnover remained flat at £137m after a series of delayed public sector projects hit expected workload.

Despite higher staff costs as the business continued investing in recruitment, training and apprentices, operating margin improved from 1.6% to 2.2% over the year.

Chief executive Jonathan Seddon said funding pressures on public sector clients, high interest rates and lingering supply chain cost pressures continued to weigh on the market.

But he said a major internal restructuring, giving four specialist business units full responsibility for project performance, had improved governance and profitability.

The group said several major public sector schemes expected to start during 2025 were pushed back, although many finally began later in the year, boosting prospects for 2026.

Seddon has increasingly shifted its workload towards painting, maintenance, refurbishment, property services and decarbonisation contracts, which are less exposed to lengthy procurement delays than larger building projects. The social housing division also remained a core part of the business, spanning new build and retrofit work.

Its order book also remained robust, with 76% of targeted 2026 turnover already secured at the start of the year, up from 71% a year earlier. Repeat business increased to 80% of workload while apprentices now account for 14% of the workforce.

At wider group level, turnover slipped to £140m from £144m while pre-tax profit fell to £5m from £6m, largely due to a £1.9m loss at the group’s development business after land promotion profits dried up.

Group net cash at the end of the year end stood at £11.7m.