The firm has revamped its new business team to take on “big ticket” opportunities and poached a new business development director from Capita to spearhead the drive into larger, more complex contracts.

Chief executive Mark Tincknell also plans to exit poor service contracts as they expire in a move to raise profitability.

Tincknell warned this will see social housing revenues fall £25m this year and £40m in 2011.

The firm also plans to tighten its belt at its compliance division, which will see revenues fall by a total of £15m this year and next.

He said: “We are specifically seeking to lower procurement costs, boost productivity and rationalise our property portfolio.

“As the group has grown so rapidly over the last few years there are a number of opportunities to target savings.”

Tincknell added that mounting financial pressure in both public and private sectors was driving a deep, structural change among customers.

“They are therefore carrying out fundamental reviews of their procurement strategies, leading to an increase in multi-service outsourcing.”

“This represents a once in a generation opportunity for us to demonstrate how we can help our customers deliver long-term change.”

In the first six-month to February, revenues at the group soared 17% to £335m. But pre-tax profits took a 20% dive to £20.7m.

Ignoring some exceptional costs, including £3.2m in re-organisation, underlying operating profit rose 18% to £23.8m.

Connaught’s orderbook stands at £2.9m, with a pipeline of £4.9bn.