The company said it made the turnaround after exiting most of its construction services businesses.

Gleeson sold its Building Contracting division, railway engineering, Concrete Repairs and its water-related construction business.

The group said it will concentrate on urban housing regeneration, commercial property development and strategic land trading.

Gleeson chairman Dermot Gleeson said: “These are all areas which are believed to offer considerable scope for sustained growth in profits.”

Next year the group is due to go onsite with a PFI scheme in Ashford, Kent, and a development of 580 houses in North Huyton, Merseyside.

The company recorded operating profits of £900,000 in the year ending June 2006, compared to a loss of £10.9m. Revenue was down from £522m in 2004/2005 to £387m this year.