Galliford Try, parent group of Queensferry Crossing contractor Morrison Construction, has nearly doubled its construction order book to £3.1bn since buying Miller Construction.
In a trading statement for the first half of the year, the firm said the integration of Miller would cost less than first expected, with the enlarged business generating “exceptional levels of cash”.
The group said its balance sheet was strong, with net debt lower than budget.
In construction, the order book of £3.1 billion was transformed from £1.75bn in 2013, and there was an improving pipeline of opportunities.
The integration of Miller Construction was proceeding on plan, with restructuring costs likely to be lower than initial estimates while still in line to deliver planned savings.
The company said the enlarged building business had been geographically reorganised and was benefiting from the strengthened management team.
A total of 94% of projected revenues for the financial year to June 30 2015 had been secured, with 56% in place for the following financial year a marginal improvement on each measure from 2013.
Galliford Try reported that in housebuilding, following the quieter summer period, the sales rate has improved, although not at the same rate as last year.
There was a good in-hand position of sales, reserved, contracted or completed, of £509 million although it was down from the £560m of 2013 while units required to meet half-year targets had been sold.
The company said its Linden Homes subsidiary continued to focus on margin and was achieving prices ahead of forecasts.
There was also strong progress in Galliford Try Partnerships with the order book at £620m.
The record landbank of 14,050 units was achieved ahead of plan, with opportunities remaining very good across all regions.
Executive chairman Greig Fitzgerald said the disciplined growth of housebuilding and construction divisions was helped by the steadily improving confidence in the economy.
He said: “Construction, bolstered by the acquisition of Miller Construction in July, is benefiting from an improving market and the stronger presence created by the combination.
“I am delighted both with the efficient integration process and by the strong contribution already evident from the incoming team.
“The group is encouraged by the prospects of delivering further growth in line with our strategy.”
The £790m Queensferry Crossing over the Firth of Forth, the largest infrastructure project in Scotland for a generation and the single largest project let by Transport Scotland to date, is being delivered by Forth Crossing Bridge Constructors, a joint venture featuring Galliford Try’s other Edinburgh-based subsidiary Morrison Construction.