A construction firm which has nearly trebled revenues in three years has been taken over by a listed business for £4 million.

DCB (Kent) Limited, based in Hartlip, near Sittingbourne, has been acquired by Bilby, a holding company set up last year to buy up gas heating, electrical and building services firms.

The business, which has bout 100 directly-employed staff, reported turnover of £18.5 million last year and hit the headlines shortly after it was named Medway Business of the Year.

However pre-tax profits dropped to £339,000, down from £526,000 a year earlier, which it blamed on taking over a behind-schedule development and its associated staff.

It attracted its new owner after being re-awarded contracts with housing association AmicusHorizon for another five years and after being nominated as the preferred contractor for East Kent Housing – for both Canterbury and Thanet councils – for a six year term.

It predicts revenues of £20 million when it files its next accounts and is hoping to grow revenues by £1m to £2 million each year for the next five years.

The company will continue to operate under the same brand but benefit from its new owner’s greater purchasing power.

The firm, which has its main contracts with housing associations and local authorities, was founded in 1998 and is run by husband and wife team Chris and Caroline Webster.

The current management team will continue to manage and operate the company.

Mr Webster said: "I am positive this will result in increased employment opportunities as our group's aim is to organically grow our businesses and provide a one-stop solution to our clients through our group structure.

"What it means for DCB is the strength both financially and in resources, to consolidate our recent growth and market position, and to move forward into larger and more profitable contracts."

Bilby, which trades on the AIM of the London Stock Exchange, also revealed it has bought Spokemead Maintenance Limited for £8.7 million and is financing the two acquisitions by placing new shares worth £5 million and increasing its loans with HSBC.

Deputy executive chairman Phil Copolo said: “We are very pleased to announce the acquisitions of DCB and Spokemead, two successful businesses that will further enhance the group’s offer and reach.

“With their strong management, both businesses have long-established reputations for delivering high levels of service. Furthermore these acquisitions will further enhance Bilby’s ability to tender for larger-scale contracts.”