Pre-tax profit at social housing contractor Connaught fell 13% to 拢10.7m in the six months to the end of February as it was hit by 拢10m of restructuring and acquisition costs

However, turnover at the group, which refurbishes and maintains social housing, rose 17% to 拢355m on the same period last year, and profit before exceptional costs was up by a fifth to 拢20.7m.

The firm had to write off 拢5.8m against the cost of integrating businesses it had acquired in 2009 and moves to restructure the business. In addition it had to write off a further 拢4.2m in goodwill from the companies it had bought.

The firm, where founder Mark Tincknell took over as chief executive in February, has since conducted a review of its major contracts designed to re-focus the business on larger, long-term opportunities. It said it had decided to exit 鈥渦nderperforming areas鈥� when contracts ran out, leading to a reduction in turnover of 拢25m in 2010 and 拢40m next year.

It has also created a specialist division to target 鈥渂ig ticket鈥� contracts worth more than 拢100m. The firm said its order book now stood at 拢2.9bn, with 拢403m of orders taken in the first six months, compared to 拢385m last year.

In a statement to the City, the firm said the recession provided a 鈥渙nce in a lifetime鈥� opportunities for it.

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