Group turnover dropped to £109m compared with £115m in 2002. This was because of timing differences on large contracts.
Sales at Tulloch Homes increased from 250 properties in 2002 to 380 in 2003 with turnover rising from £38m to £45m.
David Sutherland, Tulloch chairman, said: "An investment programme is now being undertaken on landbank replenishment throughout Scotland in areas of proven demand, laying the keel for this year and beyond."
Sutherland added that Tulloch's future prospects appear to be promising. He said: "We are now a multidisciplinary group focused on maximising returns and unlocking the value for shareholders as these returns are delivered."