Profits at Forth bridge contractor Galliford Try leapt to record levels last year as the construction and housebuilding group hailed its exposure to new opportunities in Scotland.
The good news came as chief executive Greg Fitzgerald revealed his wish to retire after more than three decades with the company, firing a starting gun on the search for a successor.
He will leave the business no later than the end of next year, with the Galliford board having already begun the search for a successor.
Mr Fitzgerald said his decision was “a personal one”, and he remains fully committed to delivering the company’s growth strategy.
“As our full-year results announced today demonstrate, the group is in great shape, with a strong management team, and very well equipped for the future,” he said.
Revenues at the group, which is part of the consortium building the new Queensferry Crossing though its Scottish Morrison Construction subsidiary, leapt by more than a fifth to £1.77 billion during the 12 months to the end of June.
Pre-tax returns rose by 28% to £95.2 million, prompting a 43% hike in the full-year dividend to 53p per share.
However, the performance could not prevent stock in the group slipping, with shares closing the day down 27p at 1,211p.
The company said it had delivered record profit thanks to strong performance across the group and “successful delivery of a disciplined growth strategy”, while net debt of £5.1m was almost a third of its level at the same time last year.
Mr Fitzgerald hailed the performance of top-end housebuilder Linden Homes, and said integration of Edinburgh based Miller Construction acquired in a complex deal earlier this summer was “proceeding very well”.
“We are very pleased to have acquired Miller Construction, which more than doubles the size of our order book, adds several strategically important frameworks and also brings additional talent to the enlarged group,” he added.
Galliford said the market for its construction division remained “strong” in Scotland, with 84% of next year’s revenues already secured, deals to develop new schools in Kelso and Newbattle in the bag and a pipeline of opportunities on the horizon.
But it contrasted this with the position in England, where the public-private partnership market had remained “quiet”.
“We are particularly active in Scotland, where there are a number of PPP projects in progress,” the group said.
“We are part of the Alliance Community Partnerships consortium on the hub South West Scotland initiative, and are also part of the South East Scotland hub.
“During the year, our construction business in Scotland won a number of contracts to build or refurbish schools and hospitals through these hub initiatives.”
The company said the housing market “continues to be positive”, with mortgage availability and consumer confidence driving up selling prices.
The firm said its landbank was at record levels, with 34% of sales for next year already reserved or exchanged.
Galliford Try chairman Ian Coull said Mr Fitzgerald had given the group “excellent leadership and vision” over almost a decade in the top job.
“The company has a clear disciplined growth strategy against which we are making strong progress,” Mr Coull said.
“We have begun the search for Greg’s successor. Greg is committed to ensuring a smooth transition and will leave the business in a strong position for his successor.”