Shepherd Group remains cautiously optimistic over the short and medium term despite announcing a pre-tax profit of £16 million.
Group chairman Alan Fletcher said it was well placed to fully exploit opportunities thanks to restructured banking facilities - despite a significant reduction in turnover.
The company posted a £1.5m loss last year, although that figure included an exceptional £12.4m cost suffered by Shepherd Construction due to problems with the Trinity Walk development in Wakefield.
Operating profit before exceptional items fell by just £1m to £23.6m. However, turnover for the year to the end of June plunged by almost a quarter to £526.7m.
Mr Fletcher said: “We must be cautious about short to medium term prospects at this uncertain point in the recovery from the worst global recession in living memory.
“However, the actions taken, and the advantageously restructured banking facility which we enjoy, enable us to exploit fully opportunities arising now and in the future.”
Turnover fell by 43 per cent in Shepherd’s built environment division, which suffered an operating loss of £2.1m, while the SES business recorded a pre-tax profit of £2.5m with turnover down 14 per cent. The industrial division’s pre-tax profits slipped £3.1m to £24m as turnover in the Portakabin operation fell by nearly 14 per cent.
In sharp contrast, the property division capitalised on greater activity to increase turnover to £38.6m and cut losses from £17.4m to £6.4m.