The building contractor saw revenue edge up 5% to £395m last year from £376m as activity increased across live projects.

But pretax losses more than doubled from £32m to £76m, with the latest setback blamed on subcontractor performance, labour shortages and continuing building safety liabilities.

Parent group support continued during the year with a further £55m cash injection through the issue of new shares, following a £32m injection in 2024.

Despite the losses, Bouygues UK ended the year with £287m of cash, up from £221m.

Bouygues said a small number of subcontractors failed during the year as difficult market conditions continued to hit the supply chain.

The contractor said work had continued on affected projects but cost forecasts had been revised to reflect the impact.

Pressure from legacy liabilities also continued to build.

Current provisions on the balance sheet increased from £44m to £69m during the year, while non-current provisions climbed from £155m to £202m.

Management said the business remained selective about bidding and had secured new work to add to its existing order book.

The latest published accounts said: “While the directors expect pressures on reported financial performance to remain during 2026, they believe that the company’s strategy should provide the foundations for improved results in future years.”

Bouygues said it would continue to monitor economic conditions and developments around Building Safety regulation when making future operating decisions.