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Work in the water and telecommunications sectors lifted contractor North Midland Construction back into the black in its half-year results, despite ongoing problems on three building and civil engineering contracts.

The firm reported a pre-tax profit of 拢371,000 in the six months to 30 June 2014, compared to a pre-tax loss of 拢480,000 in the first half of 2013. The firm reported a pre-tax loss of 拢6m in the 12 months to 31 December 2013.

The firm reported a slight rise in revenue to 拢91m in the first half of 2014, up from 拢89m in the first half of 2013.

Robert Moyle, chair of North Midland Construction, said the group鈥檚 profit had been held back by ongoing problems on three 鈥渓egacy contracts鈥� in its building and civil engineering division.

He said the management of this division had been 鈥渞estructured鈥� but the 鈥減roblems [with the contracts] still remain鈥�.

He said: 鈥淧rogress is being made in the resolution of these contracts, but the timing is proving to be problematical.鈥�

The building and civil engineering division reported an operating loss 拢0.84m in the first half of 2014, compared to a 拢1.5m loss the previous year.

Moyle said that when the three problem contracts were stripped out of the group鈥檚 results, the group made a pre-tax profit of 拢1.8m, up from 拢1.2m the previous year.

The firm鈥檚 NMCNomenca division, which works exclusively in the water sector, reported an 8% increase in operating profit to 拢940,000, up from 拢870,000, while its revenue rose 10.8% to 拢41m, up from 拢37m.

Moyle said the NMCNomenca division won a series of contracts in the water sector during the half-year period, including a 拢16.5m job to reconstruct the Ambergate reservoir with Laing O鈥橰ourke.

Moyles said the group鈥檚 utilities division had 鈥渂een the beneficiary of increased expenditure by the telecoms companies on broadband infrastructure and this has caused revenue to rise by 15.5%鈥� to 拢11m, up from 拢9.5m. The division also reported a rise in operating profit to 拢140,000, up from 拢4,000.