The Harrogate-based firm said that group revenues are running at 96 per cent of pre-Covid levels and the business is making "excellent progress" despite some market sectors not yet being back to historic levels of demand.

The group said it is trading well and in line with the boards' expectations.

A spokesperson said: "In the UK division demand from our core markets of infrastructure, housebuilding and construction has remained supportive. Certain areas of major infrastructure investment such as HS2 have been very busy for the Group, with other key elements, such as the rail sector (CP6) and water (AMP7) expected to accelerate in H2.

"General construction has been satisfactory with repair and maintenance work remaining good, but the sector is to a degree impacted by materials and labour resource constraints and the pace of growth will be partially dependent on these issues being resolved. Residential construction remains supportive and we are seeing good demand in this segment."

Vp added that its unternational division has also experienced a tangible recovery in trading in the new financial year despite the distraction of extended lockdowns in some parts of Australia, New Zealand and Malaysia.

The group will announce its interim results for the six months ended 30 September 2021 on Tuesday, 30 November 2021.

How HS2 investments booted Harrogate-based Vp's trading