This compares to a loss of £43m the previous year that was mainly due to writedowns in the East Midlands.Turnover remained stable at £1.5bn.

Mike Putnam, chief executive of Skanska UK said: “I am very pleased with these results. They are in line with our targets and evidence of the work we have undertaken to put our past behind us and get the business back on track.”

He said the firm would continue to be selective in the jobs it bids for and said 2010 had started “on a brilliant note” after being awarded a £1bn Essex BSF job.