Bullock Construction, the company formed from a management buyout of Montpellier’s social housing arm, has reported its first full-year results.

Pre-tax profit fell 12% compared with Bullock’s last year under Montpellier. It made £5m for the year ending 30 September 2006 compared with £5.6m in 2005. Turnover increased 31% to £117m from £89m.

Managing director John Gaffney said he was “pleased with the way the company had performed since the buyout”. He said the fall in profit was in line with expectations as the company had incurred some costs during the buyout. He expects turnover in the coming financial year to reach £140m.

Gaffney said the buyout had been a positive step. “We have been able to focus our training and business on the social housing market, which has been better for us. Clients were pleased we were backed by HBOS and no customers have left us.”

Bullock, which operates mainly in the Midlands and northern England, was bought out 18 months ago. Montpellier, which now trades as Renew, sold the business to raise money after it made a loss of £6.9m in 2004.