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Pre-tax profit at Shepherd Group has almost halved after a 拢14m hit on a delayed scheme in Nottingham.

In the year to 30 June 2008, the figure fell 46% from 拢42.2m to 拢22.9m despite a 5% increase in turnover from 拢685m to 拢718m.

The 拢47m Trinity Square project in Nottingham, which was to provide accommodation for students at Nottingham Trent university, was built for developer Helical Bar. The final phase was handed over this summer; it was originally scheduled for completion in October 2007.

This delay in the Nottingham project pushed Shepherd鈥檚 construction division 拢1m into the red, on the back of turnover of about 拢323m.

The 拢14m hit was announced in the same week in October as Vaughan Burnand, the contractor鈥檚 former chief executive, made a sudden departure from the company.

Alan Fletcher, chairman of Shepherd Group, said: 鈥淧erformance on the vast majority of Shepherd Construction jobs was satisfactory but a major loss arose on one contract. Changes have been made at the business to strengthen the team and to reinforce the culture of risk management.鈥�

The economic slump also pushed its property arm into the red, making a loss of 拢6.6m on turnover of about 拢50m.

Its manufacturing division, which includes the Portakabin business, made a pre-tax profit of 拢31.2m on turnover of about 拢225m. Meanwhile, its engineering division posted its highest ever profit of 拢2.5m on turnover of about 拢122m.