The final cost of its floating jetty job and separate living accommodation and infrastructure project at the naval base, which was initially thought to be in the region of £35m, is now anticipated to be £46.9m.

Announcing its preliminary results today for the year ended 31 December 2015, the construction and regeneration group’s reported operating loss for the year was £10.3m, down from £26.5m profit in 2014, after taking account of the contracts which were inherited after the acquisition of Amec in 2007.

On a positive note, adjusted operating profit was up 34 per cent to £38.8m (2014: £28.9m) on revenues of £2,385m which rose 7 per cent on the previous year (2014: £2,220m). This was driven by 20 per cent revenue growth in Fit Out and in Construction & Infrastructure which was up 5 per cent.

The group’s strategically important mixed-tenure regeneration housing activities in affordable housing also saw a 29 per cent revenue increase.

Chief executive John Morgan said he expected the group’s “positive momentum” to continue this year.

He said: “We are pleased with the year end result which is evidence of the strategic and operational progress made across the group during the year and this, together with a positive outlook going into 2016, has enabled us to raise the final dividend.

“Fit Out has performed very strongly, with record revenue levels coupled with significant margin growth, whilst Urban Regeneration has again delivered a strong profit performance thereby reinforcing our long-term strategic investment in our regeneration activities. Margins in Construction & Infrastructure have remained low as expected, however the second half of the year has seen an improvement in its performance as a result of the considerable progress made in closing out its older and lower margin construction contracts in London and the South, and which then puts the division on a stronger footing going forward.

“Looking ahead to 2016, the positive momentum across the group is expected to continue. A strong level of performance from Fit Out is anticipated, together with further strategic progress in Urban Regeneration and profit growth in Affordable Housing, driven by its mixed-tenure regeneration activities. With a further steady recovery in the performance of Construction & Infrastructure also expected, the group is in a strong position to deliver on its expectations.”

The group finished the year with a net cash position of £58m (2014: £56m). Adjusted earnings per share were up 35 per cent on last year at 63.0p (2014: 46.7p). The dividend for the year is 29.0p, up from 2014’s 27.0p per share.