Carillion started rescaling its UK construction division during the depths of the downturn in 2010.
Half year results to June 13 show construction services revenue down to £503.8m from £631.6m last time as underlying profit fell to £19m from £25.9m.
Carillion said: “The reduction in first-half revenue was primarily due to the planned rescaling of our UK construction activities, which we have achieved through tightening contract selectivity to focus our activities increasingly around the delivery of integrated solutions for PPP projects and support services customers, and projects for other customers with whom we have long-term partnerships.
“We believe that rescaling is now largely complete and expect second-half revenue in this segment to be higher than that in the first half.”
Construction operating margins fell to 3.8% from 4.1% but Carillion maintains a long-term target of 4%.
Major contract wins during the period included a £400m deal for the Battersea Power Station Development Company, a £73m scheme for Argent to deliver a further phase of its King’s Cross redevelopment and contracts for Ask worth £50m.
Carillion’s selection as the preferred bidder for the Royal Liverpool Hospital PPP project also includes £335m.
The company now has construction orders worth £2.3bn with 90% of work secured for 2013.
Overall group results saw a dip in turnover to £1,964,6m from £2,156,8m last time as pre-tax profits stayed stable at £73.5m from £72.4m.