This latest set-back follows an £8.3m loss the year before and prompted a major financial restructuring at the firm, which achieved a 7% rise in revenue to nearly £200m.

Mark Overton, chief financial officer at Tolent, said: “We have worked hard over the last six months to financially strengthen the business and increase working capital which has included the renegotiation of our finance facility, a rights issues which raised £3.7m in new share capital and an £8m cash injection following the completion of a land deal which will soon become South Seaham Garden Village.”

He added that despite recent losses, the underlying business remained profitable with the firm in a robust financial position with management accounts for the current year to date showing the company returning to profitability.

Paul Webster, chief executive officer at Tolent, said: “Our priority moving forward is to secure a sustainable profit, working with trusted clients as we continue to increase our workload within the public sector.

“We are focused on consolidating our position within the North East and Yorkshire and will continue to deliver some of the flagship projects we have become known for.

“Naturally with the increasing pressures on wage inflation, material prices and availability we have to be cautious in our approach to winning new work, however, we have a strong and identified pipeline of just under £1bn across a variety of sectors that provides us with the confidence to be cautiously optimistic for our business over the next few years.”