Chief executive Bill Hocking said: “Our disciplined approach to bidding and active engagement with our supply chain have proved particularly important during the current period of materials shortages and inflation.

“We have successfully managed and mitigated these challenges without any material impact on trading.”

In an end-of-year trading update, Hocking said Galliford Try had continued to improve its performance after returning to profitability at the half-year and would now soon report profits at the higher end of analysts forecasts, presently between £9m and £11m.

Galliford Try’s average month-end cash stood at £164m during the financial year to June, while the order book was slightly ahead of last year at £3.3bn, with 90% of revenue for the year ahead.

Hocking said: “Our people, working off firm foundations of risk management and contract discipline, have delivered strong financial results.

“We are meeting our objectives of operating sustainably and delivering controlled growth, cash generation and improved margins.  The Group has an excellent order book and is strongly positioned to contribute to the UK’s economic recovery.”