North Midland issued a gloomy trading statement to the City today explaining a £300,000 loss on turnover of £38.7m for the three months to September 30.
The firm said: “The deterioration in the economic climate is having a significant adverse effect on certain sectors of the Group’s business.
“We do not anticipate a significant improvement in the trend rate of underlying trading performance during the final quarter.”
Problems with delays and cost overruns on a major contract within the building division are still hampering the firm and a claim is being launched over the dispute.
The group’s order books are also looking thin with work for 2012 standing at £70m compared to £89m last year.
The statement said tender opportunities in the water sector “remain scarce” but the highways arm will outperform last year.