The contracting arm, which accounts for nearly three quarters of the year’s £72m group turnover, drove the improved pre-tax profit performance of £700,000 after a small loss before.

Several orders for education and social housing projects boosted Cruden Construction turnover by  £18.1m to £50.6m with pre-tax profits up 13% to £1.3m.

Cruden Group chairman Stephen Morris, who stepped up from managing director in January, 2010, said: “I am delighted that Cruden Group returned to profit this financial year.

“Our close client relationships have helped us succeed in a tough and competitive market – a market where activity levels have reduced and where tender margins have declined severely.”

Cash rose from £2.4m to £9.6m as more work flowed into the company.

Tight market margins hit Cruden Property Services where profits edged forward to £140,000 after a £2m rise in sales to £16.4m.

Cruden has decided to spin off its small works business to stand alone from property services.

This performed strongly over the year and is one of the top-ranked contractors on the Manchester City Council small works frameworks. The small works specialist is expected to deliver strong growth over the next three years.

Hillcrest Homes sales fell by more than £3m to £5.2m, its losses narrowed by one-third, to £250,000.

Cruden said it was hopeful that this would be a big turnaround  year for housing, with work expected to start shortly on several quality sites.