QTS, the rail maintenance firm that Scots entrepreneur Alan McLeish sold for £80 million last year has posted another bumper profit in its first full year under new ownership.

The Lanarkshire-based company made £8.9 million profit before tax in the year to September 30 on sales of £88.8m.

The company made £8.6m on sales of £102.4m in the preceding period, which covered 18 months.

Entrepreneur sells firm begun with £300 loan for £80m

The performance underlines the scale of Mr McLeish’s achievement art QTS. He founded the business as Quality Tree Surgeons in 1991 with £300 borrowed from his mother to buy a chainsaw.

When Leeds-based engineering and construction group Renew bought QTS in May last year it noted the company had established a strong position in a market with good growth prospects.

Success of Lanarkshire's QTS will encourage entrepreneurs across Scotland

Spending on rail renewal and maintenance work is set to rise significantly from this year under the five-year spending plan agreed by Network Rail with the UK Government.

In the latest accounts for QTS directors noted: “The company has had a further rewarding year with the rail sector remaining buoyant, committing to their upgrades and maintenance plans.” The average monthly number of employees rose to 362 in the year to September, from 321.