The biggest pre-tax profits in York-based Shepherd Building Group's 115-year-old history were unveiled today.

Profits for the year to June 30 soared 15 per cent to £35 million - and the biggest contributor was Portakabin, which made a record £20.7 million, mostly from its hire operation. Shepherd Homes contributed a record £10.1 million.

But since that financial year Portakabin has run into difficulties, with 48 job losses earlier this month.

At the time union leaders blamed the jobs cull on the Government pulling out of a £19 million order to build housing for asylum seekers in Oxfordshire - an order which would have meant six months' work for the 720-strong workforce.

At first Portakabin bosses were expected to shed up to 80 jobs but this was reduced to 48, mostly shopfloor workers.

Brian Anderson, the regional industrial organiser for the Transport and General Workers' Union, said he was delighted by the annual figures, but added that he feared that the "construction bubble has now burst in this part of the world".

In his report on the annual figures, group chairman Alan Fletcher also struck a note of warning.

He said: "The improving profit trend is encouraging. It should be recognised, however, that there are currently uncertainties in relation to short and medium-term activity levels in key markets, particularly for Shepherd Homes and for the manufacturing division" (of which Portakabin forms part)."

He added that increasing competition in the construction sector and lower profit margins - with pre-tax profit for the construction and engineering division falling from £6.4 million to £2.6 million - presented "a considerable challenge to the management of our construction companies".

Today's announced figures show that the group's annual turnover increased by 8.7 per cent, to £655.9 million.

Shepherd Construction's turnover increased from last year's £296.6 million to £348 million, with significant increases also recorded at the manufacturing division and at Shepherd Developments.

The financial strength of the Group is reflected in cash resources of £57.5 million.

Shepherd Building Group is one of the largest wholly family-owned private companies in the UK.

The business was founded in York in 1890 and the head offices of all its operations remain in the city.

Updated: 09:51 Monday, October 31, 2005