The Scottish contractor posted pre-tax profit of just over £3m for the year to January 2026, up from £320,000 a year earlier, while cash balances climbed from £12m to £21m.

The turnaround was driven by Muir Construction, where turnover increased to £86m and pre-tax profit jumped from £2.2m to £4.8m.

The contractor said it enters the current financial year with a healthy pipeline of secured work but warned that inflation, labour shortages and fierce competition continue to squeeze margins.

House building arm Muir Homes also improved despite the subdued housing market.

Revenue edged up to £21m from £20m, while its pre-tax loss narrowed to £1.6m from £2.4m.

Elsewhere, property development increased revenue to £3.5m and lifted profit by more than half to £1.4m, with net assets in the division now exceeding £20m.

Staff numbers reduced from 193 to 184.

Chairman John Muir said: “Increasing Muir Group’s turnover by 30% and delivering profit before tax of more than £3m represents significant progress, particularly against a backdrop of subdued confidence, higher interest rates, inflationary pressures and continuing geopolitical uncertainty.

“With a strong balance sheet, healthy cash position and solid pipeline of work, the Group is well placed to build on this year’s progress during 2026/27.”