The steelwork giant booked £35.6m of non-underlying costs in the year to March, including £23.4m for bridge remedial works.

It said total bridge testing and remediation costs for around a dozen structures had been contained at £43.4m, offset in part by a £20m insurance payout.

But fresh bridge issues not linked to the original welding faults were revealed leading the firm to book an extra £9m in costs.

Severfield said this fresh provision stemmed from a reversal of revenue for certain variation orders with clients, following delays in payment and increased uncertainty over their recoverability, together with provisions for third-party consequential costs and claims.

Britain biggest steelwork contractor was also hit by a tougher market and project delays.

This saw revenue dip 3% to £451m, while underlying pre-tax profit halved to £18m. Core construction operating margin dropped from 8.3% to 4.9%. A final dividend has been suspended.

Severfield cut around 6% of its workforce in March as part of a cost-saving drive and has agreed an option to sell up to 24.9% of its Indian 50:50 joint venture to partner JSW Steel for £20m, although it currently has no plans to do so.

The firm booked a £2.9m cost for redundancies and severance costs including outgoing CEO, Alan Dunsmore. The group is still searching for his replacement.

Despite the setbacks, Severfield said it had secured new bridge orders and maintained a £444m forward order book, with £324m due in the next 12 months.

Charlie Cornish, Non-Executive Chairman, said: “While we performed well operationally, delivering a diverse range of projects for clients across many of our key market sectors, tough market conditions in the UK and Europe, combined with the ongoing bridge remedial works programme, contributed to weaker financial results.

“In response to these challenges, we have taken and continue to take appropriate cost reduction and cash conservation measures.

“Despite the current market backdrop, we have secured a strong baseload of work for FY26 and into FY27, and we continue to see some good projects coming to market.”