Allenbuild was part of Renew’s Specialist Building Division which also includes Walter Lilly and Britannia Construction.

Renew will receive £1.375m immediately with the balance in 12 month’s time after ten outstanding contracts reach practical completion.

The firm said: “The Board of Renew considers that the effect of this transaction will be to reduce reported Specialist Building revenue from continuing operations for the year ended 30 September 2014 by approximately £50m but that there will be no impact to the expected operating profit from continuing operations.

“The transaction is expected to have a similar impact on results from continuing operations for the year ending 30 September 2015.”