Galliford Try expects turnover to break through the £1bn barrier next year, thanks to recent acquisitions and a resurgent housing market.

The firm’s pre-tax profit jumped 19% to £32m for the year ending 30 June. This rises to £34m when a £2m exceptional gain from the sale and leaseback of its premises is included.

Under the leadership of chief executive Greg Fitzgerald Galliford Try is considered to be one of the industry’s growing companies.

The contractor’s revenues grew 19% to £851m and its landbank rose 58% to 4115 units last year.

In construction, profit from operations increased to £13.2m on a revenue of £629m, giving a margin of 2.1%. Andy Sturgess, head of the construction group, said: “When I came to Galliford Try three years ago I said I wanted the margins to be above 2% so I am pleased with the performance.”

The operating margin in the housebuilding divisions was 14.3% from an operating profit of £32m and a turnover of £224m.

Galliford Try made two acquisitions during the financial year. In February it bought Chartdale Homes for £67m and at the end of March it acquired Morrison Construction for £42m.

The company estimates that its revenue next year will “significantly exceed £1bn” as a result of this expansion.

Fitzgerald said the integration of Morrison was progressing well and had given the group a “significant presence in the Scottish market”.

Profit from operations excluding the acquisitions rose 14% to £36m, with £2.6m from acquired businesses, resulting in a total of £38m.

At the start of the current financial year Galliford Try reorganised its construction group into two divisions: building and infrastructure.

Sturgess now leads the building group and expects turnover to be between £550m and £600m by June next year. He predicts revenue for the infrastructure group will be about £400m.

Fitzgerald said: “We have had an excellent year with record financial results. Acquiring Morrison and Chartdale has demonstrated our ability to supplement organic growth with carefully positioned acquisitions that fit our strategy.

“We have proved the success of our business model in delivering profitable growth and we look forward to reporting further progress in the coming year.”