Groundworks specialist M&J Evans has lifted pre-tax profit 67% despite a dip in turnover as its regional expansion strategy starts to deliver results.

The Midlands-based housing specialist posted pre-tax profit of £3.8m for the year to December 2024, up from £2.2m, while turnover edged down 3% to £323m.

Operating profit rose 31% to £5.1m as tight cost control offset softer volumes across the housing sector.

The group’s order book climbed 13% to £504m, supported by stronger tender conversion rates of 25.3%. Net assets were up to £52.3m and cash rose to £25.2m after a refinancing added £9m in extra liquidity and pushed out debt maturities by four years.

The launch of an Eastern Counties region was described as a “particular success”, contributing £17.8m of orders in its first year and set to hit £20m turnover in its first full year of trading.

Chief executive Chris Southgate said: “Despite ongoing challenges in the UK housing market, FY24 was a year of strong financial and operational progress for M&J Evans, backed by tight cost control.

“The launch of our Eastern Counties region has been a particular success, contributing meaningfully to our order book in its first year and validating our focus on driving regional growth. “

Looking ahead, Evans expects stabilising interest rates, reinstated government housing targets and improving sales by house builders to translate into higher site activity in 2025.