Halesowen-based AJ Mucklow came back into profit last year but said the property market remained “sluggish”.

The company posted pre-tax proifits of £18.8m compared to a £38.8m loss in the corresponding six months in 2008.

The rise in property values in the second half of last year also saw the net value of assets rise to £172.8m at the end of 2009 compared to £159.7m at the end of June last year. Rental income on its assets remained relatively static at £7.9m compared to £8.1m during the equivalent months in 2008.

Rupert Mucklow, Chairman of A&J Mucklow Group plc, said: “I am pleased to report a solid performance by the Group for the first six months of our financial year, despite a sluggish property market.”

“Our financial position remains strong and has been further improved by the extension and increase of our principal banking facilities, a reduction in void levels and the successful disposal of a trading property.”