Australia’s biggest construction group, CIMIC, is battling soaring costs for materials and workers but delivered a $425 million annual net profit after changing the way it accounts for its equity stake in ASX-listed Ventia Services.

CIMIC, which was delisted in early May 2022 and is owned by Spanish contractor Grupo ACS, said its net profit rose 4 per cent in the year to December from a year earlier despite higher expenses, accounts filed with the Australian Securities and Investments Commission showed.