Its UK civil engineering, building and property businesses crept back into a £2.9m profit during the first six months after running up a £2.7m loss in the first six months of 2014.

Turnover jumped 18% to £776m, helped mainly by favourable changes in the sterling exchange rate with the euro.

The Dutch-based group was forced to introduce a cost-cutting “Back in Shape” programme back last year to get the business back on track, which has cost €66m to date.

Rob van Wingerden, CEO of Royal BAM Group, said: “The Back in Shape programme, which has been underway now for 10 months, is making fundamental improvements in our culture, structure and processes.

“The working capital reduction programme is strengthening our net cash position and the savings from non-project overheads are coming through.

“The order book is improving as new projects are being won under the enhanced procedures and existing projects get nearer to completion.”

He added: “Completing the Back in Shape programme remains our key priority in the second half of 2015.

“We have started the process to update BAM’s medium-term strategy, and will announce our plans in February 2016.”

Royal BAM Group revenue rose 4% to €3.5bn with adjusted pre-tax profit up to €19.6m from €4.6m in the first half of 2014.