New business and the delivery of long-term contracts has enabled Walsallbased civil engineering contractor Barhale Construction to turn £2.2 million losses into a pre-tax profit of £2.1 million.
With order books standing at £106 million for the year ahead, the company said it was confident in the future.
A decline in business during 2005 saw it record losses of £2.2 million, as a result of which it initiated a strategic review.
With an operational refocus, a growth in rail and general civil engineering work plus the delivery of long-term water framework contracts, the firm has been able to achieve an operating profit of £2.4 million for the financial year to December 31, 2006.
The results were helped by increased volumes and reduced overheads due to savings.
Turnover for the year rose 32 per cent to £113.5 million, compared to £86.1 million a year earlier, with volumes returning to 2004 levels.
In a statement the company said: "Positive factors during the year included the return to profitability of the utilities contracts and the award of a £9 million pipeline contract on behalf of NACAP Land & Marine on National Grid Transco's strategic gas pipeline."
The increased workload also had a beneficial effect on staffing levels with the workforce growing from 757 to 884 by the end of the year.
The return to profitability also enabled the firm to place orders for new plant and machinery.
Looking ahead, the company said trading volumes were buoyant thanks to existing customers and new long-term opportunities secured in water, gas, rail, telecoms and airports, with the 2007 secure order book currently standing at £106 million.
The strategic review prompted the development of the Three Pillar philosophy designed to improve performance in the key areas of profit, safety and the environment.
"The directors are confident that the Three Pillar focus allied to the traditional Barhale brand will deliver a bright and sustainable future for Barhale," the statement added.