Montpellier posted a small profit for the six months to 31 March this year after turning in a £6.9m loss for the year to 30 September 2004.

It has made a £147,000 pre-tax profit in the first half of 2005. This covers the period after the business was refocused on social housing, brownfield remediation and building in partnership.

However, the board, led by chief executive Brian May, noted that total exceptional costs for the restructuring would be about £6m for the year as a whole.

Turnover for the first half rose 6% to £225m, compared with the same period last year. The company said that it had an order book of £582m at the interim stage.

Montpellier said the restructuring would provide a “stable platform” for the future but it did not recommend an interim dividend.

Montpellier is in discussion with the management of Bullock Construction, its main social housing business, about a possible sale.