A Dundee engineering firm admitted it had under-estimated the length and severity of the recession after posting a loss of more than £1.5 million.
Galloway (Holdings) Ltd has turned the corner after moves to cut costs and focus on growing sales in profitable work.
It had also raised £250,000 in share capital to cover the loss and help its future prospects.
The holding company has six subsidiaries including Galloway Group and Ductmate, with main markets in construction and oil and gas.
Accounts for the 18 months to August 2014 but approved by the board on February 15 this year show a turnover of £28.5m.
Costs incurred in achieving that revenue amounted to £22.4m, and after administrative expenses of £6.5m Galloway made a pre-tax loss of £1.56m.
Managing director Jim Mathieson said the 18 months had been exceptionally challenging because of the lack of turnover and the relatively fixed cost base.
“The overall economic climate, for the markets in which the company operates, has continued to be difficult,” he said.
“The board under-estimated the length and severity of recessionary pressures.”
Lack of demand and very competitive pricing compressed profits in the construction sector. In the period since August 2014 lack of demand reduced activity in oil and gas.
Reducing costs, focusing on sales growth and recruiting key individuals at the 250-employee firm were part of a turnaround strategy.
The process had delivered some success with results improving since the spring of 2015.
The group would remain reliant on the UK construction sector, and Mr Mathieson said: “There are a number of good opportunities currently being explored for 2016 and thereafter.
“The business is very busy with an upturn in all areas.”
He continued: “Trading projections for the year ahead are positive but it is considered there will still be further challenges as prices remain competitive.”