Pre-tax profits at local government contractor Willmott Dixon have fallen by a quarter, according to the firm's latest financial results.

The company announced yesterday that pre-tax profits decreased from £21.1m in 2011 to £15.7m in 2012, although turnover went from £1.05bn to £1.03bn over the same time period.

‘While our work volumes and turnover held up well in a tough market, our reduced pre-tax profit is a reflection of the tighter margins available across our core markets,' said group chief executive, Rick Willmott.

Mr Willmott said the recent re-appointment as sole contractor on Scape's major works framework could deliver £1.25bn of work over the next four years.

‘What is vitally important is the progress we continue to make in creating a platform for new growth, including an increasing pipeline of development work through our Regen division, the wider take-up of our Sunesis standardised designed, and contract and framework wins by our Energy Services company that launched successfully in 2012,' he said.