The fall was owing to increased subcontractor, staff and materials costs.
Turnover at the West Midlands-based contractor rose marginally during the same period – from £42.6m to £43.7m.
Despite the decline in profit, the company issued a dividend of 42p per share (totalling £650,000) after paying nothing in 2006.
The highest-paid director took home £413,140, up from £100,000 in 2006.
Average pay for the 98 members of staff was £48,278, up from £40,897 in 2006.
The company said: “The target of maintaining a core client base and limiting turnover to a manageable level is assisting in improving client focus and company performance.