Profits have slumped at Wolverhampton-based building materials business Tarmac as it suffers from the near collapse of construction work in the UK.

There was better news for Walsall-based emergency cover company Homeserve, as it reported a good start to the year across its three main businesses.

But its UK Emergency Services business – in line for a sell-off – has continued to face “challenging market conditions.”

Tarmac operating profits fell 83 per cent in the first half of the year, to just £16 million from £98 million 12 months ago.

The figures were revealed as Tarmac’s parent company, mining giant Anglo American, revealed its profits worldwide fell 31 per cent to £1.9billion.

But Anglo squashed reports that it was planning to restart a sale of Tarmac.

Plans for a sell-off were shelved last year.

Anglo American said: “A sale is not expected in the current economic conditions.”

The company are currently axing 19,000 jobs worldwide to cut £1.2billion in costs by 2011, as it fends of a £40billion takeover approach from rival miner Xstrata.