North Midland Construction's profit has been chopped in half by a آ£1.59m provision made for its fine in connection with the Office of Fair Trading's investigation into bid-rigging last year.
Otherwise the firm would have posted a 9.5% increase in profit for the year ending 31 December 2009, despite a fall in turnover.
North Midland Construction reported pre-tax profit, discounting the OFT fine, of آ£3.15m, up from آ£2.88m in 2008.
But turnover plunged to آ£144.2m from آ£202.2m the previous year.
North Midland has lodged an appeal against the OFT fine and a hearing date of 9 July 2010 has been set.
The firm has a positive cash balance of آ£6.2m, compared to a آ£9.7m deficit a year ago.
Chairman Robert Moyle said: “It is very pleasing to report a result, in spite of the extremely difficult economic conditions currently prevailing, before exceptional items, both in excess of the forecast and that of the previous year.â€
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