The firm confirmed today: “As a result of further reviews of the status of these contracts and the unfavourable settlement of other old projects where reduced payment had to be accepted, as there was a significant risk of client commercial failure, the Group expects to report an operating loss of circa £6 million.

“The highways division also incurred bad debts on a major project, which are reflected in the overall result.

“Challenging conditions in the construction industry predominated during the year, with the consequent impact on margins and profitability.

“The underlying trading position in the last quarter was profitable, as previously forecast, but has been seriously impacted upon by the revised positions taken upon the aforementioned contracts.

“The 2014 opening order level is strong and market conditions in some areas are improving.

“This, coupled with the re-organisation and re-profiling of the building and civil engineering division, where improved performance has already been experienced, will deliver a return to growth this year.”