A CONSTRUCTION and maintenance company is targeting further growth after reporting a 40% increase in turnover.

AGM Group has increased revenue from £1 million to £1.4m despite a reduction in retail fit-out contracts.

Income has been boosted through a greater number of industrial unit refurbishments and by making inroads into other sectors.

The firm has recently completed its first lift-shaft refurbishment project and a four-month contract to revamp 150 rooms across Premier Inns at Leith, Edinburgh, Polmont and Inverness.

Alongside growth in the larger interiors division, the smaller worth maintenance arm, founded in 2008, has increased turnover to more than £350,000.

Andrew Meek, founder, is hoping to take turnover to £2m by winning higher value contracts.

He said: "We have continued to grow steadily by picking up new clients and providing good service to the ones we have had for years.

"Being a small business in the construction industry there are still sales out there we can get from the big boys.

"We have done contracts up to £500,000 until now and I think we could probably service up to £1m.

"It is now about trying to get that opportunity.

"We are on the tender lists for most of the building surveyors and architects, so when they are getting a job of between £100,000 to £200,000 there is no problem of us being up against companies with £10m turnover. If we are in the same league as those large businesses for smaller contracts there's no reason we can't keep picking up bigger things.

"We have been able to increase turnover and market share during this recession and I believe we will be able to pick up the larger contracts when conditions improve. We just need to keep throwing our hat in the ring."

The company is overhauling its website in a £15,000 investment that will let customers book online more easily plus view invoices and give access to pictures of jobs in progress.

It is also in discussions about working UK-wide with AS Watson which owns Superdrug, Savers and The Perfume Shop.

Mr Meek added: "There are some good signs that people are starting to spend money again.

"The website is about trying to improve communications between our engineers and clients. There is a long road ahead but we are trying to embrace the technology which is available."

AGM has worked for Clydesdale Bank, HSBC, Amazon and Vivienne Westwood in the past.

It was founded in 2004 with the help of a £5000 loan from the Prince's Scottish Youth Business Trust.