The arm’s length external organisation, which lost £1.2m the year before, says it has performed well in tough economic times and remains a going concern, with backing from its local authority owner.

Executive director Graham Paterson, in annual accounts filed to Companies House, said that considering the pressures on the construction industry, “we are pleased City Building delivered strong results”.

A spokesperson for City Building added: “Thanks to the hard work of our first-class workforce over the past year, City Building was able to generate over £100m in new contracts and return £5m to Glasgow City Council.

“As a result of international accounting regulations, the accounts appear to include a loss. Any attempt to suggest that this is money which would otherwise be available to the council is to misunderstand the situation.”