In a trading statement covering the first six months of its financial year, the firm said it had already secured expected turnover for the full year.

Greg Fitzgerald, Chief Executive, said: “It has been another strong performance for the group in the first half of the financial year with profits anticipated to be at record levels.

“In construction we have increased the size of our order book and remain focused on margin protection and cash generation.

“Construction is performing well in challenging markets with the prospects looking better as our pipeline of opportunities continues to increase.”

The order book now stands at £1.75bn, compared to £1.6bn during at the same time last year.

Of this total, 40% of orders come from the regulated sector, 39% from the public and 21% from private sector clients.

Group net debt rose as planned to £90m after a period of strong land acquisitions, but was lower than expected due to the strong performance of the construction arm.

Fitzgerald said Galliford Try was also continuing to benefit from the housing recovery.

“Housing market conditions have continued to improve and we are delighted to have secured a 16% increase in the landbank during the period, with the land market remaining positive.

He added: “Across the group supply chain cost issues continue but are being well managed. We are confident that our disciplined strategy will deliver further good growth and improved returns this year and beyond.”

Housing has seen a 20% rise in sales reserved at average selling prices up 16% to last year, due mainly to greater southern bias. But completions remained flat at the half-year at 1,359 homes.