In a trading update issued this morning the group said that first-half trading has been substantially ahead of the corresponding period last year, driven by improvements in margins and profits.

The firm said: “Trading in the first half has been strong, driven primarily by margin and profit growth in Fit Out and by margin improvement in Construction & Infrastructure. Partnership Housing and Urban Regeneration have both traded as expected, with Urban Regeneration lower than in the prior year period due to the phasing of its scheme completions. In addition, the first half has seen modest profit contributions from both Property Services and Investments.

“As a consequence, the half year results for the group are expected to show profit before tax in the region of £23.5m, reflecting growth on the prior year of around 45%.”

The cash performance has again been strong, with average daily net cash for the first half of £132m. The net cash as at 30 June was £97m.

The statement added: “The performance of Fit Out in the first half, its current trading patterns and the forward visibility provided by the size and quality of its order book, indicate an out-turn for the year for Fit Out which is much stronger than previously expected.

“Taken together with the expected margin improvement in Construction & Infrastructure and the second half weighting to Partnership Housing, the group now anticipates that its 2017 full year results will be significantly ahead of its previous expectations.”

The group will announce its half year results on August 8.