The National Federation of Builders says it is on course to repay its debts by 2007 after reporting a surplus of almost a quarter of a million pounds for the past year.

The organisation suffered a £223,000 deficit in 2003, but its annual report for 2004/05 shows it has made a surplus of £240,000 and is on course to be in the black in two years.

The results were revealed at the federation’s annual general meeting on Wednesday, where the organisation also announced that John Robinson, managing director of contractor Hofton & Son, would replace Galliford Try’s Bob Merriman as national chairman.

The federation said revenue from annual membership subscriptions had risen 15% pro rata. The NFB said most of its growth was due to an increasing number of companies entering its highest turnover band, as net membership figures had remained in line with the previous year.

Barry Stephens, chief executive of NFB, said: “The federation’s refusal to stand still has kept us relevant to today’s industry, with services and support that add real value to our member businesses across the regions. This has translated into a strong set of results. Our ability to continue evolving and innovating to keep our members ahead of industry change will be central to our continued growth.”