Turnover drops but Shepherd in profit

The York-based company made a pre-tax profit of 16m in the year ending June 30, 2010, compared to an annual loss of 1.5m the previous year.

Turnover fell to 526.7m, from 701m, due to "very challenging conditions" in many of the group's markets it said.

Group chairman Alan Fletcher said: "The economic background to our operations continues to present a stern challenge for the group's management. That management has risen strongly to the challenge, is reflected in the group's annual results".

Borrowings have been cut from 31m to 1.9m and the firm increased cash flow from operating activities to 44.4m from 14.2m.

Apart from the property revaluations and restructuring costs, the group's 2009 results, were adversely affected by a 12.4m loss incurred by Shepherd Construction, the main contractor at the stalled Trinity Walk development in Wakefield, which is now back on track.

Looking to the future, Mr Fletcher said: "We must be cautious about short to medium term prospects at this uncertain point in the recovery from the worst global recession in living memory.

"However, the actions taken, and the advantageously restructured banking facility which we enjoy, enable us to exploit fully opportunities arising now and in the future."