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Redundancy costs, sharply lower construction profits and increased losses from its materials arm took a heavy toll on Galliford's results for the year ending June.Pre-tax profits at the Leicestershire-based contractor more than halved to £3.03 million (1991: £6.4 million); as a result the firm described a 'disappointing' and 'a reflection of the extremely competitive market place which has developed during the recession'.Operating profits of £3.73 million (1991: £8.56 million) were reduced by an exceptional charge of £703,000 to cover the 150 redundancies made during the year.But, Galliford maintained its dividend and retained strong cash balances of £13.2 million, against £13.9 million. The general contracting order book is also little changed at £68 million.The group's construction profits tumbled to £1.6 million from £4.7 million as tender margins came under 'considerable pressure'. Galliford is now concentrating on healthier markets such as social housing and water, although roads generate 24 per cent of turnover.Profits in specialist contracting leapt to £393,000 from £55,000 with good results from pipeline and tiling companies.