The deal formed part of a five-year strategic partnering agreement between the two companies. It reinforces Speedy's position as Carillion's preferred supplier of its full range of products and services, and extends across all Carillion group companies, including the recently acquired Alfred McAlpine business.

The accommodation business services both the Carillion group's internal accommodation requirements as well as external customers.

The agreement was announced alongside Speedy’s preliminary annual results for the year to March 31, which showed a 19% rise in pre-tax profits to £48.1m. Turnover also rose 39% to £465.5m.

Chief executive Steve Corcoran said the company's exposure to the public sector would outweigh a fall in house building in the private sector, which accounts for less than 5% of its revenues.

He said: “We are mindful of the current uncertainties surrounding UK economic growth, although in our own markets we are not currently experiencing any overall downturn.