Pre-tax profit for the year to 30 June was £8.3m against a loss of £12.3m a year ago. Turnover rose to £194.3m from £189m last time.

"The year has been one of successful execution of the transformation strategy announced in March 2006, following the strategic review," said the group.

But chairman Dermot Gleeson said that increased caution among mortgage lenders and higher interest rates have had a marked impact on buyer confidence and house prices. The group is particularly strong in housing regeneration work.

"At this stage it is not clear how protracted or severe this market adjustment is likely to be," he said.

In March 2006, the company announced that outcome of its strategic review and referred to the possibility of a return of cash to shareholders following the completion of its transformation programme.This decision, said the group, had been deferred