Chairman Carl Brian said he had hoped to deliver a profit last year after cutting administration costs by 15%, mostly through reduced staffing from 206 to 170.

“Delivering the turnaround of the business which we set out on achieving three years ago, has been more challenging than we expected, but I do now believe we have got both businesses onto a secure financial platform going forward.”

He said the group should return to breakeven this year with a return to decent profitability in 2020.

Despite another tough year last year, turnover increased over 2018 by 20% to £54m.

Within the group, Cruden Construction turnover edged up 17% to £38m, but operating losses increased to £2.3m from £1.8m previously.

This was mainly down to one project in the North West, which was handed over to the client last month. All losses on the project were taken in the 2018 accounts.

Cruden Property Services also slid £1m into the red on revenue slightly ahead at £15m.

The firm has now scaled back on the responsive repairs market and is now refocussed towards larger scale, predominantly traditional projects, which offer a reduced administrative burden.

Brian said: “In the current year ended 2019, secured revenues are significantly increased meaning we should hit budgeted turnover, and are now in a position to cover our overheads.

“The ongoing improvement in both turnover and operating margin, giving us full recovery in overheads will result in a far stronger trading performance, with further significant increases expected in the yearend 30 September 2020, as our secured sites give us longevity and have been secured at much stronger margins.”