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The company said that it expects public spending cuts to reduce potential contract workloads and increase pricing pressure as more firms compete for less work.
The group reported a pre-tax profit of £18.9m for the year, turning around 2009’s loss of £11.9m.
Revenue was £131.9m (2009: £116.5m), arising from higher land transaction values offset by weaker construction division turnover and development activity during the year. Trading profit increased to £18.0m (2009: £11.5m), again because of the improved contribution from land trading and development activities in 2010. Profit before tax also benefited from a one-off pension liability management credit of £4.5m
Chairman John Reis, said: “Whilst remaining challenging, the property market has stabilised and is now showing some signs of recovery, at a level which allows the Group to make a reasonable return on its investments. However, I continue to believe that the recovery will be patchy and relatively long and drawn out."
After 30 years on the board and 15 years as chairman Mr Reis has announced his retirement, to be succeeded as chairman by John Brown.
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