However, chief executive David Singleton did stress that the company would make a reasonable profit by year end, but it was uncertain what the first half may hold, depending on the completion of several contracts.

"The big issue is where we get to at the end of the full financial year because that will be the test. I hope that we will be profitable in the first half of the year but it's not absolutely certain," Singleton said.

Company Chairman Jock Clough said that the company's situation could be attributed to over extending itself in the last few years.

"The company's turnover doubled from the 2000 year to 2003 and our losses and problems associated with a number of projects confirm that we had insufficient systems and people resources to manage an unprecedented increase in work.

"We are focused today on growing the business, but at a rate commensurate with our resources and capabilities."

The company will also move back into its core area of oil and gas business to buoy future business revenue.

"Clough has some outstanding prospects locally and internationally, particularly in the oil and gas area of our business. We are confident that a number of these prospects will convert to business that should lead to improving profitability in the years to come," said Clough.