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SME consultant John Rowan & Partners saw turnover rocket by a quarter and profits increase by 13.5% in the past year, but warned that many contracts were reliant on threatened public sector spending. Turnover rose to 拢6.79m, pre-tax profits grew to 拢1.11m and staff numbers were up by 13%.

Stephen Gee, managing partner, said the much of the growth was down to public sector work. 鈥淵ou have to say that a lot of that increase was in the public sector,鈥� he said.

Contracts that had come from public sector housing were at risk of being slowed down, Gee warned. 鈥淥n Decent Homes, maintenance and affordable housing it鈥檚 likely that projects will be extended,鈥� he said.

The firm鈥檚 order book was 鈥渟lightly up鈥� compared to last year, Gee said, but the downturn had cut bids by over a tenth and margins had been trimmed.

Gee said: 鈥淏ids are certainly down, and some are suicidal bids. Our bids are 12% lower now.鈥� He added that margins were 鈥渁 couple of percent lower鈥� than before the downturn and were actually worse now than during the depths of the recession.