The Mott MacDonald-owned contractor delivered one of its strongest trading performances in recent years, lifting operating margin to 4.8% from 3.7% in the year to December 2025.

Pre-tax profit surged over a third to £26m on revenue up 5% to £534m.

The business also expanded its workforce by 9% to 2,216 employees while increasing its cash reserves to £48m.

Despite securing new AMP8 work with South West Water, Wessex Water and Scottish Water, directors expect only modest revenue growth in 2026 as utilities gradually mobilise their investment programmes.

Looking beyond this year, the contractor said Ofwat’s AMP8 investment programme, around twice the size of AMP7, would place unprecedented demands on the industry’s resources.

Directors warned the “significantly increased level of workload” was likely to “lead to resourcing pressures in some specialisms or geographies that will require careful management”.

The company said careful workload planning and recruitment would be essential to prevent the surge in activity from creating operational bottlenecks or eroding margins.

Talent and capacity was also highlighted as one of the group’s principal strategic risks, with pressure expected to intensify as AMP8 schemes move from planning into delivery.

JN Bentley enters the new investment cycle from a position of strength. Its MMB joint venture with Mott MacDonald started 2026 with a secured order book of £604m, up from £552m a year earlier, providing a solid platform as water companies ramp up spending over the next five years.