Tolent's construction division, which employs 20 staff at its regional office in Leeds, is involved in a number of Yorkshire projects, including Saville House in Sheffield, and apartments in Harrogate Road, Bradford.

The company revealed that its revenue of £85m was up on the £76m recorded a year ago, but was 18 per cent down on the second half of 2007 as order conversion slowed and a number of projects were deferred or cancelled.

Tolent said it had a secured workload of £100m, including a number of larger contracts that would contribute to revenue into 2009.

"This, together with the new orders which we hope to secure in the next few months, will give us the stability to trade through this difficult period for the construction industry and economy in general," it said in a statement.

The company, which has a capitalisation of £12.2m, is cutting its interim dividend to 4p a share from 5p a year ago.

Operating profit for the first half of 2008 of £709,000 was down from £1.17m in the same period last year. Net interest receivable increased by £35,000 from £356,000 to £391,000.

Profit before tax of £1.1m was down from the figure of £1.53m recorded last year.

Shareholders' funds stand at £12.6m having reduced from the £13.2m recorded on December 31, 2007.

The group had cash and cash equivalents of £10.7m on June 30, slightly down on the £13.2m recorded on June 30, 2007.

The company said: "This figure fluctuates according to circumstances but as reflected in the interest earned we have had significant credit balances for the whole of the first half of the year."

Tolent Construction was formed in Tyneside in 1983, and carries out building and civil engineering work in the public and private sector from its head office in Tyneside, Teesside, Yorkshire, Manchester and London.

Contract values range from £1,000 to £60m and it operates in all market sections including civil engineering, housing, industrial, waste, petrochemical, pharmaceutical, commercial buildings, the motor trade and leisure.

Recent contract wins in Yorkshire include work for the Helmsley Group on a new office in Heworth Green, near York, and industrial premises in Sheffield for Helioslough.

Tolent has also been involved in the £150m The Sands development in Scarborough, which includes 100 luxury apartments.

Earlier this summer, Tolent Construction said the apartments, which are divided between two buildings, Kepwick House and Lockton House, should be completed by October.

Doug Shield, the Leeds-based regional director of Tolent Construction, said the fact that the company wasn't tied to one sector was one of its biggest strengths.

"We're finding the market is still pretty healthy, and the level of enquiry is still pretty good,'' he added. "There's not much sign of any downturn yet."

However, he cautioned that this could change over the next six to 12 months.