Those contracts saw construction margins dip to 0.4% during the six months to December 31 2016 as the division enjoyed steady revenue of £742m.

Group performance was bolstered by a better performance at Linden Homes and the partnerships division which saw overall pre-tax profits rise to £63m from £52.9m on turnover up to £1,308m from £1,265m.

Galliford Try bosses have set targets in a new-four year strategy to aim for 60% growth in overall pre-tax profit and an annual turnover of nearly £4bn.

Construction has an increased annual turnover target of £1.8bn by 2021 but the company is keen to emphasise its selective bidding approach.

Galliford Try said: “Construction remains focused on risk management and the quality of its order book.

“We anticipate that the second half margin will continue to show the drag from legacy contracts, but are very encouraged by the performance of the newer work, which supports our target margins, and should begin to improve reported results from FY 2018.”

“We continue to focus on robust project selection and risk management in the pre-construction phase targeting projects that have reasonable contract terms and risk profile.”

Construction’s cash balance during the half year fell to £110.8m from £154.7m

Galliford Try said: “This reflected the deferral of several contracts in the Building division (following the referendum), which will unwind as these projects get underway; also delayed receipts from some legacy projects, which caused the Group to finance a higher than planned level of working capital by circa £40 million, and which will continue for several months pending resolution.”