This morning the contractor posted pre-tax profit of £116m for the six months to 30 June, up 22% on last year, as revenue climbed 8% to £2.56bn.

Net cash strengthened to £418m while its secured order book reached £12.2bn, swelling to £19.5bn including preferred bidder work.

Construction and Fit Out were standout performers in the first half.

Construction revenue jumped 18% to £742m generating as operating profit soared 47% to £24.4m.

Operating margin improved from 2.6% to 3.3%, prompting the group to set its sights on a raised its medium-term margin target of 4%.

The division’s pipeline was bolstered by a string of strategic wins, including a place on the £15.4bn Department for Education CF25 framework, selection as an alliance partner on the New Hospital Programme and further work across defence, education and life sciences.

Fit Out also turned in another record performance as demand for major office refurbishment and retrofit schemes remained resilient.

Revenue increased by almost a fifth to £996m while operating profit rose to £69.1m, accounting for nearly 60% of total first half profit generation.

Housing-facing operations continued to feel the effects of a subdued residential market. Partnership Housing held operating profit broadly flat despite lower revenue, while Mixed Use Partnerships slipped to a small operating loss as it continued investing in schemes expected to start on site later this year.

Chief executive John Morgan said: “Our Fit Out and Construction Services businesses delivered excellent results and made a significant contribution to group performance during the period, while our Partnerships businesses faced a more challenging macroeconomic environment.

“The medium-term fundamentals for Fit Out remain strong and in Construction, we have continued to benefit from ongoing government investment commitments. As a result, we have increased the medium-term targets for both the Fit Out and Construction divisions.”

Looking ahead, Morgan said the group expected to meet full-year expectations despite continued weakness in the housing market.