Despite the collapse of one of its biggest contractor clients mid-project, the firm successfully re-engaged with end clients and replacement main contractors to safeguard work across affected sites.

Pre-tax profits rose to £10.7m, up from £7.4m the previous year while operating margin held steady at 3.6%.

Phoenix said that all financial implications had been fully accounted for in the financial statements for the year ending September 2024, including unrecoverable debts tied to ISG’s legacy retentions and defect liabilities.

Phoenix ME said swift action and strong client relationships were key to limiting exposure. In the wake of ISG’s collapse, Phoenix was listed as a creditor owed over £20m.

A directors’ statement with the latest published accounts said: “The courage and togetherness that define our core values facilitated early re-engagement with end clients on active projects. As a result, the impact of ISG’s administration was minimised.

“All live projects during administration have since been re-engaged under new contracts.”

Over the year, headcount at the business increased by around 13% to 420 staff.

The M&E specialist, which operates across data centres, life sciences, commercial, leisure, hotels and rail, said its recent expansion with a new regional office in Cambridge had opened fresh markets and contributed to the firm’s growth plan.

Phoenix said it has entered the new financial year with a record £520m secured order book and forecast revenues of more than £350m this year.