Lower income from the sale of PFI disposals saw profits at Taylor Woodrow's construction division fall more than a third in the first half of the year.
The construction operation - which has just installed Tim Peach as managing director after former boss Andrew Wyllie took over at Costain - saw pre-tax profits fall to £9.5 million from £14.9 million last year.
The fall comes despite turnover increasing from £191.2 million to £232.6 million, although the operation has increased its order book by 9 per cent.
Across the group as a whole, Taylor Woodrow felt the effects of the tougher UK housing market in the first half of the year.
Overall pre-tax profits fell from £175.9 million to £170.4 million, although turnover increased 1 per cent to £1.45 billion from £1.43 billion.
In the UK, housing turnover fell back 17 per cent £681.2 million, with operating profits of £108.1 million - down 18 per cent.
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