AWG bought Morrison for £265m in August last year.
A spokesperson said: "We are working through the problems and it is not as bad as we first thought. We can see an end to the process."
The problems surrounding Morrison have led to fresh speculation this week that AWG will sue brothers Gordon and Sir Fraser Morrison for £30m. The spokesperson refused to comment, saying the group was "under strict legal instructions" not to do so.
Morrisons' turnover for the six months to 30 September was £415m and operating profit was £7m. AWG announced in May that Morrison had made an operating loss of £33.8m in the same period last year.
AWG said work taken on after the acquisition was profitable and provided a sound base for the future. The group said Morrison Construction was now concentrating on longer-term framework and PFI deals.
AWG has restructured its businesses, dividing them into two halves. The first will include all of its water interests and the second will group together its utilities, construction, rail and PFI divisions.