Results for Shepherd Group show a pre-tax profit of £31.5m compared to £16m last time as turnover grew to £611m from £526.7m.

The improvement follows a cost-cutting programme at the firm after a series of disappointing results.

Shepherd Construction recorded an increase in turnover to £251.3m compared with £185.2m in 2010 and achieved the highest level of operating profit in its history of £4m compared with a loss of £2.1m in 2010.

The 2010 loss was mainly made up of restructuring costs after staff numbers at the construction division fell from 900 to 700. The group currently employs more than 3,000 people.

The main contributor to group profits was the Industrial Division which saw its operating profits rise to £26.6m from £24.1m.

The development division broke even but Shepherd Homes suffered operating losses.

Group chairman, Alan Fletcher said: “The quality of the management teams, the excellence of the product offerings, the swift action taken to improve efficiencies and sound cash management have combined to drive improved profit performance and build the Group’s financial strength.

“These are encouraging results which provide firm evidence of the Group’s resilience in the face of challenging markets and demonstrate its ability to continue to withstand the current market pressures.

“While the continuing general economic uncertainty points to a need for caution in the short to medium term, the considerable improvement in the Group’s profitability and its sound financial performance give confidence in the underlying strength and future potential of the business.”