Group CEO John Homer suddenly stepped-down last month and nmcn immediately started an internal review of all its major jobs.

A stock exchange announcement this morning said: “The review has resulted in the board now expecting the group to report a loss before tax of between £13.5 million and £15.0 million for the year.”

External auditors have also been called-in to “verify the extent of the prior year adjustments included within this loss.”

The contracts under review were mainly in the water sector.

Nmcn has also undertaken a review of its financial structure following a change in payment terms on new framework agreements.

It is looking to establish a medium-term debt package to sit alongside its existing overdraft facility.

A refinancing of one of the firm’s property developments will also release £4m of cash.

Ian Elliott, Acting Chairman, said: “Following the announcement of the Board changes and the subsequent internal review undertaken, a number of issues have come to light which are concerning and are being addressed.

“Decisive action is being taken by the Board to limit the impact on the business and to ensure that the good relationships which the Group has enjoyed with its customers for many years are maintained.

“I am pleased to report that activity levels and sales inquiries are encouraging and that we are close to appointing a new CFO.

The combination of the coronavirus impact and the company’s internal issues is challenging, but the board remains confident of the market opportunity and the group’s ability to successfully address it.”

Nmcn shares fell 33% in early trading on the news.