The M&E contracting arm of the family-owned group saw revenue slip to £200m in the year to March 2025, down from £227m, as major schemes were pushed back by project phasing and wider economic uncertainty.

But tighter operational control helped operating profit climb to £3.1m from £2.7m, lifting margins to 1.6% from 1.2% and pushing pre-tax profit up to £3.6m.

Management said the resolution of the legacy contract reduced overall profits in the year but significantly strengthened the company’s financial position by removing a long-standing risk and freeing up future capacity.

The contractor ended the year with £16.3m cash in the bank, up from £12.4m, while net assets increased to £15.5m and net current assets edged up to £9.9m.

Gratte Brothers said disciplined contract management, early client engagement and close monitoring of supply chain exposure had helped it navigate continued labour shortages and material cost pressure across the sector.

More than 70% of turnover continued to come from repeat clients, particularly in data centres and commercial buildings, with further work secured across retail, hospitality, education, healthcare and life sciences.

Investment in digital systems and process automation remained a priority, with £0.2m spent on research and development during the year to improve efficiency and reduce costs.

Looking ahead, Gratte Brothers said it expected a temporary dip in turnover as several major projects are delayed by slower economic recovery and financial market volatility.

But the firm said underlying demand for its services remained strong, with delayed schemes expected to move into delivery during 2026 and 2027, supporting future growth.