Latest results show a 50% jump in turnover to £42m while operating margins improved to 2.6% resulting in a rise in pre-tax profits to £1m.

The company now has its eye on a 4% margin target as a strategy to improve efficiency and not chase loss-making contracts pays dividends.

Group Managing Director Dave Jones said: “It’s been a tough few years for the sector and like many, we’ve suffered a little pain, but we recognised that to follow the pack and pursue contracts and turnover, at the expense of profitability, would only lead to failure – a fact borne out by a succession of failing contractors.

“Our processes across all divisions, Construction, Building and Communications are lean and efficient.

“We’re now in a good position to exploit the experience and resources within the group, to win tenders and deliver projects.

“The changes we have made to our business have realised significant efficiency savings and put us in good shape to achieve our growth targets – matching the 65% growth seen in 2012 however, will be a challenge.

“We are now reaping the rewards of the work undertaken overhauling all of our systems over the past few years from a cohesive group branding exercise to a new IT system and infrastructure.

“Sage Construction has helped streamline our contract processes and even the management team has undergone a thorough ‘skill set analysis’ programme to ensure we are future proofing our business – nothing is being left to chance in the pursuit of our ambitious growth plans.”

ERH decided in 2009 to focus on core sectors and frameworks across the South West.

Recent successes include major contracts with Bristol Airport, South East Wales Highways Framework, Bristol City Council, Cardiff Councils, Bath and North East Somerset Council, MOD, Fluor, Gladman Properties and a wide range of highways projects for the Welsh Government.