Reporting its first full year as a wholly independent business, the civils firm’s strategy to focus on existing customer relationships and core capabilities resulted in a successful year for sales, increasing turnover by 13% to £215m.

But trading margin slid from 3.2% previously to 2.8% due to the two contracts where costs exceeded budgeted amounts following the impact of significant cost inflation.

As a result pre-tax profit, before exceptional items, slipped to £5m in the year to March 2023 from £6m previously.

John Dowsett, CEO Octavius said: “These results represent a solid year in which we’ve continued to lay firm foundations for success as an independent, specialist engineering business that our customers, partners and colleagues want to work with.

“With a strong project pipeline and further opportunities to convert, the board and I have every confidence in our strategy to safely deliver profitable growth across Highways and Rail.”

Over the year, Octavius invested heavily in its support functions, completed its largest ever single project (A46 Binley Junction), was awarded the A46 Walsgrave junction project and successfully won places on Network Rail’s CP7 frameworks in both the Southern and Wales & Western regions.

The business is aiming for further growth this year after buying the assets and contracts of R&W Civil Engineering from administrators last July.