Construction group Owen Pugh has revealed a 16% increase in turnover to £37.3m, and gross profits of £8.2m.
The Northumberland-headquartered firm, which employs around 400 people, reported a 20% increase in gross profits and a 6.7% increase in operating profit to £985,000.
Owen Pugh’s financial accounts for the year ended March 2014 show the firm generated £2.81m cash from operating activities - an 11.3% increase on the previous year.
During the year, the firm opened a £900,000 depot in Blaydon to accommodate the expansion of its civil engineering division, Owen Pugh GDC, as well as specialist vehicles for its HCS Drain Services division - which has secured a number of new contracts across the region.
A total of £2m was spent on plant and machinery across its operations within the financial year.
John Dickson, chairman of the Owen Pugh Group, said that the financial year April 2013 to March 2014 was one of significant developments and continued challenges for the group.
He said: “The overall performance of the group really is an outstanding achievement, particularly when you consider the circumstances within which we are operating.
“The business has seen substantial investment in new plant and equipment, the acquisition of new premises in Blaydon and the retirement of existing shareholders, coupled with continued industry challenges including the impact of the recession on workload volumes together with more recent challenges of resource constraints resulting from improved economic conditions elsewhere in the UK.
“The strategic investments we have made are however starting to reap dividends and are building a solid base for the future by improving capabilities and efficiencies right across our operations.”
In the current financial year Owen Pugh is continuing to invest in its people, plant, equipment and technology.
Mr Dickson added: “We are determined to continue to improve both operating efficiency and the quality of customer service across the group. We aim to be the civil engineering contractor of choice across North East England and beyond.”
The Owen Pugh Group has recently worked on the restoration of Dunston Staithes, improvements to National Trust property Gibside and the construction of a new Intermodal Terminal at PD Ports in Middlesbrough.
Owen Pugh comprises five trading companies operating in the civil engineering industry, undertaking earthmoving and demolition, drainage and groundworks, plant-hire and haulage, quarrying, inert waste and drain cleaning, and CCTV surveys.
The group is headquartered in Dudley near Cramlington, with other bases in Blaydon, Sunderland and Stockton-on-Tees, as well as Marsden Quarry.