A drop in work at the construction division was mainly to blame for a fall in group turnover to £114.6m for the year to December 31 2011 compared to £131.9m last time.
Group profit before tax also dipped to £16.1m from £18.9m.
Chairman John Brown said: “Construction activity remains very subdued with difficult market conditions and we do not expect any change to either activity or competitive tender pricing levels in the short term.
“In general, we have seen a reduction in the value of individual contracts as new build schemes have been replaced by a growing proportion of refurbishment projects.”
Turnover at the construction division fell to £71.9m in 2011 from £85.5m last time while pre-tax profit was £7.9m down from £9.9m last time.
Boot saw an improved performance at its Hallam Land arm and property investment and development divisions.
Brown said: “Whilst still challenging, we have worked hard to adapt and improve our land and development sites so that they deliver acceptable returns for the Group in the more competitively priced market in which we now operate.”