Fountains expects to be close to break even for the year to September 2008.
The forestry services and grounds maintenance business also expects to have net cash at the end of September.
The flow of work from customers is improving.
Fountains recently won a £1.8m contract from North Lanarkshire Council in Scotland. New contracts won in the past two years will generate £6.6m a year. More long-term contracts are being negotiated.
Nicholas Jeffrey, David Barrass and Henry Schmeltzer have been appointed non-executive directors. Andrew Walker has left the board.
The Fountains share price rose 1p to 58p each, which values the company at £8.7m.
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