Hull-based multi-engineering contractor C Spencer Engineering Group has recorded a loss for the fourth year running after revenue plunged 30% to £46m.
The business suffered a £1.7m loss in the year to April 2021 as a result of the pandemic.
But a post year-end contract dispute settlement for £3.8m for unpaid works gave the business a major boost in funds enhancing working capital.
The successful outcome of the legal case believed to be with MW High Tech Projects UK over the Energy Works (Hull) incinerator plant should also release a further £1.25 of cash held as security for bonds on ongoing contracts.
The group entered the new financial year with secured work of £53m and a pipeline of £188m.
Chairman and founder Charlie Spencer said: “While there has been a short term, sharp disruption in activity in 2020 as a result of the Covid 19 pandemic, general market activity is expected to remain positive in all sectors with Government’s committed spending in transportation, particularly the rail sector and the enhancement of existing provision of new rail infrastructure and maintenance providing significant future construction opportunities for the group.
“The structural repair, refurbishment and maintenance of bridges also provides a strong future pipeline of opportunities in a sector where the group has earned an excellent reputation for providing innovative access solutions that provide a competitive advantage.”
He added that the group’s subsidiary Slipform Engineering was undertaking concrete core construction for several high-rise projects throughout the UK with the board expecting significant growth as its market presence develops.