Profits have halved at Wolverhampton-based roads and concrete group Tarmac over the last year, as it axed more than 1,200 jobs to cope with falling demand.

The slowdown in the building industry, caused by the credit crunch and the weakness of the pound added to Tarmac’s woes.

It saw profits fall 56 per cent to £75 million and turnover slumped by £1.1 billion, or 35 per cent.

Around one in ten of the company’s staff lost their jobs in 2009.

The figures were revealed by parent group Anglo American today. The mining giant saw its own operating profits halved to £3.7bn from £7.5bn as the recession hit demand for commodities such as platinum, iron, ore, coal, nickel and diamond, causing prices to slump.

Chief executive Cynthia Carroll said today: “Against what has been an unpredictable economic background, Anglo American delivered a solid operating performance.”

Restructuring, improved productivity and costs savings have seen Anglo cut its global workforce by 23,400 people in the last year.

Anglo has also confirmed it was actively looking to sell Tarmac and a number of its other businesses that were not felt to be part of its core operations.