But the building division continued to struggle for work despite turnover increasing to £11.3m for the period compared to a low of just £1.9m last time.

NMC does most of its work in the civil engineering, utilities and M&E sectors through its specialist subsidiary Nomenca.

Group pre-tax profit to June 30 increased to £2m from £1.3m last time on turnover up to £77.9m from £71.3m.

The company saw staff costs fall during the year from £19.2m to £18.5m.

Chairman Robert Moyle said: ” All divisions were profitable, with an improved performance from the Utilities division on the back of significantly increased volumes from the telecommunications companies, driven by the demand for increased broadband capability.

“The Civil Engineering division benefited from the commencement of the AMP5 programme for the water industry and the resolution of various schemes on the Minworth Project for Severn Trent Water.

“In an extremely competitive environment, the Highways division delivered a similar result to that of the previous year.

“North Midland Building continues to be severely affected by the downturn in demand and a nominal return was delivered, albeit on a revenue increased five fold.

“Tender opportunities are on the increase, but margins remain extremely competitive and further orders are required to deliver the forecasted result for the year.

“Nomenca, the Mechanical & Electrical Engineering subsidiary, has suffered from the slow commencement of the AMP5 programme by the water industry.

“Profitability reduced by 20.3% to £235,000 on revenue reduced by 14.3% at £18m.  The lead-in period for their works are much longer than for the Civil Engineering division and it is unlikely that the forecast for both revenue and profit will be achieved this year.  However, the prospects for the ensuing years are very promising.

“Secured Group revenue for this financial year currently stands at £170 million, compared with market expectations of £184 million.

“There is a need to secure further orders, most particularly in the non-water elements of the Civil Engineering division and the Building division.

“The market place remains extremely competitive, but the Group is well placed with its wide range of capabilities across the sector to deliver.”