The Livingston-based firm also saw its timber frame business move into the black as sales grew on the back of improving conditions across the housebuilding sector.

Its latest accounts filed with Companies House show that pre-tax profits at James Walker rose to £8.4 million in the 12 months to the end of March, up from £5.6m a year earlier, on total turnover 4 per cent higher at £112.2m.

The group booked a one-off gain of £1.3m on the sale of Gracemount Medical Centre, which was acquired by listed investor Primary Health Properties for £6.35m in August 2013.

James Walker – founded in 1863 as an Inverness timber trader – said its overall performance for the financial year had been “satisfactory”, although it sounded a note of caution over the outlook for the residential property sector.

“Whilst the market for newbuild residential properties is improving, it remains fragile, being assisted through government support,” finance director David Fairfoull told The Scotsman.

He added: “Within the building material supply industry, caution is prevalent, with restrained investment and continued competitive pricing.”

However, the firm’s Walker Timber division, which operates out of Bo’ness, turned in a pre-tax profit of £28,185, compared with the previous year’s loss of £314,376, as turnover rose 7.2 per cent to £17.8m.

James Walker, which also makes PVCu windows and doors and provides facilities management services for care homes and hospitals, saw its total headcount grow from 527 to 574 during the year.