Svella acquires “controlling interests in underperforming businesses and assets” and will now “drive performance through a combination of management-focused strategic improvements and hands-on investment.”

Nmcn is expecting to announce losses of £24m for 2020 in latest results due out within days and has been in talks over a make-or-break financing deal for months.

It is also forecasting further losses for this year.

The civils contractor will now be fully recapitalised through an equity raise of between £24m and £29m and a new banking facility of up to £8.5m from Lloyds.

Nmcn will receive an immediate £10m capital injection by way of a convertible bridging loan from Svella, that will convert into new ordinary shares on completion of the overall transaction.

A further equity fund raising of up to £19m will consist of £14m from new investors, including Svella, who will consequently have a controlling stake in the company.

Nmcn told shareholders that the alternative to dilution of their existing stakes if the deal doesn’t complete was potential insolvency.

Andrew Tinkler, Svella Chairman, said: “Our investment in nmcn will provide much needed recapitalisation of the business to position it for future growth and power its Covid recovery.

“With a strong customer base, solid foundations and industry heritage, nmcn is a well-established business with a reputation underpinned by skilled and enthusiastic employees. There is a positive culture and work-ethic running throughout the business built upon the ethos of creating a positive impact across its core operations.

“As such, there are strong synergies with other businesses and sectors we have successfully invested in to deliver management focused strategic improvements and significant shareholder value.”

Recently appointed nmcn chief executive Lee Marks will continue to lead the business.

He said: “The last 18 months have been difficult for many individuals and many businesses. I would like to thank sincerely both our suppliers and customers who have worked with us through the challenges faced by both nmcn and the wider market.

“I joined nmcn in early May 2021 because I believed it was a company that was well positioned in its key markets and had the potential to successfully and profitably address the opportunities within them.

“I remain of that view and today’s news enables us to now look forward. With the appropriate financial foundations and support of our new investors in place, I look forward to leading the business into a new chapter.”