The company said it will pursue contracts currently in dispute after profits fell to £12.8m in the year ending 31 December 2006, compared to £25m the year before. The main element of the losses came through the costs incurred in the closure of its international division.

Revenue for the company is at £886.3m , however, compared to £773.2m in 2005.

Chairman David Jefferies said the company has written down £36m on disputed contracts, adding: "Whilst these write-downs have been taken in the 2006 accounts, I must stress that we will continue to vigorously pursue our entitlements on those contracts subject to dispute."

The company said it is possible that a total of £47.2m will not be recovered.

The company said its civil engineering and property divisions performed well, although the uilding and Cogap divisions underperformed.