Morgan Sindall's construction division is back in the black after a disastrous performance last year.
Bluestone, the firm's regional construction business, posted a £179,000 operating profit for the six months to 30 June. It made an operating loss of £4m in the same period last year and a loss of £5m for the full 12 months.

John Morgan, group executive chairman, promised to bring the division back into profit this year. Morgan said that the full benefits of its recent restructuring programme had not yet been realised. He added: "The investment in public sector operations is now providing the fastest growth within the group and will result in higher second-half volumes."

The group made a profit before tax and amortisation of £10.4m, a rise of £3.1m on the same period last year. Turnover rose nearly £55m to £560m.