The materials giant let some of its 2,000 staff go in a restructuring late last year as the market tightened.

Its latest results revealed more job losses as the firm’s core housing market continued to deteriorate.

Eurocell said: “Further deterioration in market conditions since July Trading Update means full year performance now anticipated to be below our previous expectations.”

Pre-tax proft for the six months to June 30 2023 fell to £3.5m from £13.7m last time with turnover at £184.4m from £188.8m.

Chief executive Darren Waters said: “Market conditions in H1 2023 became more challenging than we had anticipated.

“Lower market volumes have resulted in an increasingly competitive environment and margin pressure in the branch network.

“With the decline in market volumes and a tough outlook for the balance of 2023 and 2024, we acted quickly to lower operating costs and focused on efficient working capital management. In addition, we continue to seek operational efficiencies, for profit and cash flow improvement, the benefits of which we should start to see next year.

“We anticipate that profits in H2 will benefit from lower input prices as well as the operational cost savings already secured.

“However, with another base rate increase implemented and the prospect of more to come further impacting upon consumer confidence, market conditions have deteriorated since the beginning of August, meaning that we now anticipate full year performance will be below our previous expectations.

“On becoming CEO in May, I initiated a review of our strategy, including the future size and shape of the branch network, customer proposition and other business structures, and I expect this will identify more opportunities for growth and efficiencies.

“Looking further ahead, the UK construction market continues to have attractive medium and long-term growth prospects, driven by the structural deficit in new build housing and an ageing housing stock that requires increased repair and maintenance.

“Overall, I believe the actions we are now taking leave the business well positioned to benefit from a recovery in our markets which will, over the medium-term, drive sustainable growth in shareholder value.”