The construction firm attributed the previous year’s losses to rising material costs impacting local government housing contracts.

In its latest accounts filed with companies house, Algo managing director Murray Alexander said: “The directors are pleased to report that the company has performed strongly in the year to 30 June 2024, in line with expectations, with turnover and other operating income increasing 26% from £28.8m to £36.3m.

“Following the completion of onerous contracts reported in the previous year’s results, profitability and gross margins have returned to normalised levels generating a profit before tax of £1.5m.

“The results reflect the company’s renewed focus on its core competencies and the directors anticipate the positive trading results will continue into the current trading period.

“The directors consider this financial performance to be good, particularly in view of the prevailing economic conditions and high level of competitiveness across the sectors in which the company operates.”

Completed projects include flats and commercial units in Kirkcaldy, work on the Dundee Ford Centre, and the redevelopment of the Active Kids Adventure Park near Luncarty.

With a “robust” balance sheet and net assets increasing to £4.1m, Mr Alexander expressed confidence in continued profitability and growth.