Wates Group has announced a 20% increase in revenue thanks to its acquisition of Shepherd Group’s construction businesses.

In the first full year since the 2015 acquisition of Shepherd’s subsidiaries, Wates’ turnover reached £1.53 billion, up from £1.27bn in 2015, with construction revenue up 40%.

Group profit before tax was up 17% to £35.5 million (2015: £30.3m).

Wates chief executive Andrew Davies said at the time that the acquisition of Shepherd Engineering Services (SES) and Shepherd FM, as well as a large number of contracts and strategic frameworks, added £300m to group turnover.

The 2016 results show Wates’ operating profits up 23% to £45.5m, translating into operational cash flow of £71.7m, taking year end cash to £191.6m.

Order book at year-end was worth £3.6bn.

Mr Davies said: “We are encouraged by the company’s operational performance, which has produced these results. We have put in place the right systems, right processes and right people to meet our strategic objectives. The successful integration of SES Engineering Services as well as a number of construction projects from Shepherd Construction has broadened our coverage and capabilities.

“The growth in our construction output has been particularly encouraging, given the current uncertainties in our sector. We believe we are well-positioned to keep delivering for our clients, because of the quality of our people, our stable supply chain and our focus on the communities in which we work.”