Staff from the former utilities division have been transferred to the new operators.

The utilities division represented about a quarter of the group’s turnover with the majority generated from the BT contract in Wales.

In its business strategy for 2006 to 2010, its parent the Wrekin Group said there were opportunities for growth across the range of utilities sectors.

The company claimed: “By 2010 Wrekin Utilities will retain the existing BT contract area - Wales, maximize telecommunications revenue in Wales by servicing other operators, expand the existing gas operations through winning work in other regions, and secure additional work streams through a phased entry into the electricity market.”

However, to increase its focus and investment in its core activities of civil engineering, design and build, regeneration and rail, the company has withdrawn from the utilities sector.

A Wrekin Construction spokesman declined to comment on the divestment.