A string of senior directors left the business in September.

And Shepherd bosses confirmed that “decisive” action has been taken to address problems in the construction operation.

Revealing latest results the firm said: “Shepherd Construction’s performance was affected by a number of challenging contracts which have now reached practical completion and so the issues affecting performance have been stemmed.

“In addition, the Group Board has acted swiftly to restructure and reorganise Shepherd Construction to address the issues which cause severe and reoccurring adverse impacts on Group performance.”

Results for the year show flat group earnings (EBIT) of £10.1m (2013: £10.2m) on reduced revenue of £686m (2013: £748m).

The group’s Portakabin operation was the most profitable part of the business while Shepherd Engineering Services, Shepherd Homes and Shepherd FM results were all “encouraging.”

Chairman David Williams said: “We are currently reviewing our businesses, assessing their strengths and weaknesses in relation to their markets, sector norms and peer performances to ensure that we continue to bring a sharper focus to those areas of the Group where the most significant future investment will be made.

“This strategy is essential in achieving our vision of maintaining and developing a portfolio of fully-empowered, high-performing businesses consistently growing shareholder value.

“Our view is that although the economic climate is improving, offering greater potential, there is still a need for caution.

“Whilst there are concerns over specific sector and operational issues, the medium term prospects for the Group are positive.”