The National Federation of Builders (NFB) has reported its strongest financial results to date, reflecting the growth of the smaller companies that make up its membership.

The trade body for smaller contractors in England and Wales reported an 8% growth in turnover to £3.5m for the year ended December 2006. Profit rose to a record £295,000 over the period.

Although membership figures remained in line with the previous year, the results were boosted by a rising number of companies with higher turnovers. The trade body also benefited from an increasing revenue stream from training activities.

Julia Evans, the NFB’s chief executive, said the figures demonstrated the body’s relevance to the SME sector.