The recovery in the housing market helped to restore performance with the civils specialist returning a £1.7m profit in the year ending October 2021 after a £1.1m loss in the previous Covid-impacted year.

Managing director Michael Lambe forecast sales revenue would rise to a record £110m this year with net margin back to 7%.

He said that growth this year would be mainly inflation driven with the expectation that materials prices would rise by 10% again this year.

“Labour rates continue to rise year on year and the growing impact of HS2 on the Midlands labour market will increase in 2022,” he predicted.

Lambe added: “The short term economic outlook for the housing market appears positive but it is undoubtedly the case that there are more external risks to our current forecast than at any time in recent memory.

“Business strategy will therefore be kept under review as when market conditions change.”

Lambe said the firm’s key housing market remained buoyant despite the expiry of the stamp duty holiday.

He added: “Pent up demand after the pandemic and the underlying housing shortage gives us the confidence that the immediate outlook for the house building industry appears optimistic.”

Lambe said that the super deduction which provides 130% capital allowance for plant had given the firm confidence to raise capital expenditure from £4m to over £6m this year.

M Lambe now employs around 150 staff and engages around 600 workers.