Chief executive Ken Fox said that this led to the winning of too much low margin work – profit fell despite turnover rising 22% to £162m.
Fox said he was cautiously optimistic that performance would improve this year. "It is our largest business in terms of turnover and our aim is to get it right," said Fox.
The North-west-based contractor's three other main arms all recorded record profit. They contributed to an overall pre-tax profit rise of 14% to £18m, on turnover up 21% to £321.1m.
Its housebuilding division saw operating profit rise 15% to £3.9m. "We are probably in the worst part of the country for housebuilding because we build in some of the poorer regions," said Fox. "But purchasing confidence is definitely returning and our operating margins are over 10% for the first time since the early 1990s."
The civil engineering division boosted operating profit 39% to £2.44m, helped by DJ Ryan, the group's utilities contractor. But Fox said Allen's hire services operation remained its "jewel in the crown". It enjoyed operating profit of £13.46m , up from £9.9m last year; turnover was £68.8m – a rise of 27%.
Fox added that Allen might make acquisitions in the utility and hire operations fields. Earnings per share were up 11% to 30.2p.
