Turnover was up 2% at £1.07bn.

The group said its cost reduction programme announced in December is now fully implemented, delivering operating cost savings of at least £100m. The final dividend of 1.675p per share is unchanged, making 2.575p for the year (2008: 2.5p).

"Whilst infrastructure and utility work continues to hold up, the relative lack of finance available for private sector commercial development makes it inevitable that construction volumes overall will remain weak," said chief executive Geoff Drabble.