Morgan Sindall said on Tuesday that the firm’s fit-out business was a key element in its success, despite a fall in demand in the sector.

Chief executive Paul Smith, speaking at the firm’s annual results on Tuesday, said that although the market was “pretty flat”, Morgan Sindall’s market share had risen.

He added that the regional operations of Benson, which it bought last year, had boosted its construction business in the South-east. The company took over Benson operations in Southampton, Reigate in Surrey and Hatfield, Hertfordshire.

Smith said the affordable housing business had also done well. He noted that the government still had a “big task” on its hands to meet housing targets.

The chief executive said Morgan Sindall’s profitability had risen largely because of the focus on framework deals. Pre-tax profit rose 34% to £27.9m last year.