Hochtief (UK) Construction blamed the continuation of a small number of loss-making projects for plunging £21.5m into the red in 2018.

Lawrence Jackson, who was appointed managing director in August 2017, said revenue had fallen by 30% to £70.6m as Hochtief became selective in its tendering to ensure new works were won at an acceptable level of risk and reward.

Headcount fell from 247 to 217 due to restructuring and the completion of projects.

Jackson said: “The company continues to focus on its core business activities of infrastructure improvements in the rail and highways sectors, involvement in the energy sector as well as major projects, in line with a five-year strategic business plan.”

He added that Hochtief’s strategy for measured growth would continue expanding its market base with clients such as Network Rail and the Welsh Government.

During the year, parent group Hochtief Infrastructure injected £11.5m into the business.