Stephen Martin, Clugston group chief executive, blamed this slip on the competitive nature of the market and the rising cost of materials.

“​We are winning more work and we’re specialising in certain markets. We’re focusing on what we’re good at.”

Four major energy from waste schemes in Leeds, Wilton, Shropshire and Oxfordshire helped to lift construction division turnover 5% to £143m, marking the fourth consecutive year of growth.

The construction division also stepped up education sector workloads completing many school, college and university projects, while staring work on the Humber University Technical College, one of a new wave of state schools designed to increase vocational skills.

Several major regional projects also commenced during the year and Clugston’s recently established West Midlands office in Bromsgrove secured key contracts including a new facility for Birmingham Dogs Home and a retail scheme in Cannock.

Facilities management activities increased with the addition of new contracts in the industrial service sector.

The group’s logistics division, achieved another year of growth as turnover increased 16% from £13.2m in the previous year to £15.3m ­– the highest level for the business in over a decade.