Contracting group Graham, which has extensive operations throughout Scotland, has reported a second year of revenues in excess of £1 billion but profits edged downwards amid "significant" headwinds across the construction sector.

Figures for the year to the end of March show a 2.8% increase in revenues to £1.13bn in what chief executive Andrew Bill said was a strong performance in the face of economic uncertainty and inflationary pressures. These challenging circumstances eroded pre-tax profits to £14.8 million, down from £15.1m previously. 

The company, which is headquartered in Northern Ireland, operates across a number of sectors including building, civil engineering, interior fit-out, facilities management, and development management. Mr Bill said Graham's focus on strategic supply chain management and "selectivity" in procuring new contracts has secured the group a record pipeline of work worth more than £2bn.

READ MORE: Graham builds revenues amid construction sector challenges

"The market has been challenging but our consistent focus on quality delivery and commitment to securing repeat business through the development of collaborative client relationships have allowed us to grow sustainably over the past year," he added.

"Looking forward, we have developed a significant pipeline of opportunity to allow us to positively approach the next 12 months, and beyond, with energy and optimism.”

Among its key projects in Scotland, where Graham has four offices, was the recent completion of an £81.5m built-to-rent development in Glasgow's Merchant City. This saw the construction of 346 flats on behalf of Legal & General as part of the larger £300m transformation of Candleriggs Square.

The group has also been in charge of the interior fit-out of BT’s new 76,000sq ft offices in Dundee which will be home to approximately 1,000 staff currently operating out of 48-year-old premises on Ward Road.

In March the company secured planning consent for a regeneration project at Meadowbank in Edinburgh that will see the development of more than 700 homes across a five hectare site. Led by Graham, the development consortium also includes Miller Homes, Panacea Property Development, and Places for People.

READ MORE: Construction activity returns to growth after six month slump

The company finished the financial year with £151m of cash at bank and in hand.

“The latest published accounts for the group are pleasing and underline the strong performance of each our divisions within our core market sectors," Mr Bill said.

"We prioritise robust governance and commercial management which are the backbone of our sustainable growth model. Significantly, the continued success of the group has been achieved despite global economic uncertainty and inflationary pressures."