The group built 109 homes during the year with an average selling price of £284,000 – an increase of 1%. Homes accounted for 48% of gross profit with lettings amounting to 21%.
New developments were started in Edinburgh, Newton Mearns and Ayrshire.
Chief executive Ed Monaghan said: "Despite turnover being down, Mactaggart & Mickel Group is financially sound and we're seeing the positive impact of a period of cost reduction and dedicated programme of diversification."
The group revealed it had cut bank borrowings from £39m to 24m.
According to reports, the company cut nearly 100 jobs last year and most of the rest of its workforce were put on a four-day week. The group returned to a five-day working week in January 2010 and now employs 177 people.