Results for the year to December 31 2015 show a pre-tax profit of £606,000 compared to a loss of nearly £3m last time.

Turnover was up to £217m from £193m but North Midland still turned down a number of jobs as it continued to deal with the problems of legacy contracts.

Civil engineering was one of the division hardest hit by troubles on historic contracts.

North Midland said: “This year has not been without its challenges.

“Closing out major legacy contracts has taken a toll, not only financially but in diverting resource and staff away from the key focus of rebuilding the division.

“Settlement and completion of the old legacy contracts resulted in the division incurring a loss for the year of £0.83 million on revenues of £7.80 million.

“The concentration on legacy contract resolution has affected Business Development input. 

“A lower risk approach to tender opportunities has been adopted and as a result of this, tender opportunities to the value of £35 million were turned down during the year.”

The new standalone building division reported a small profit while utilities work saw a jump in turnover despite being dragged into the red by legacy contracts.