Alan Dunsmore, chief executive officer of Severfield, said the slowdown in work impacted on revenue in the first half of the year, which fell 8% to £215m.

The firm’s order book also slipped 5% to £482m from the previous year-end in June figure due to £50m being removed following the decision by Sunset Studios to pause construction on its planned new film production base in Hertfordshire.

Despite these challenges, Severfield managed to report an 8% uptick in pre-tax profit in the six months to September of £11m.

Dunsmore said: “The current market conditions remain a challenge for the business, with some ongoing delays in the conversion of our existing pipeline of opportunities, as clients wait for economic stability, and some lower tendering activity and competitive pricing, particularly in the distribution sector.

“Despite this, we continue to see some large project opportunities in the UK and continental Europe and we have a prominent position in market sectors with strong growth potential and are well-positioned to win projects in support of a low-carbon economy.

“These include battery plants, energy efficient buildings, manufacturing facilities for renewable energy, together with work in the transport, nuclear and power and energy sectors given our capability to deliver major infrastructure projects.”