In a trading update this morning the company confirmed it will have to “consider its remaining options” if talks fail due to “significant working capital strain.”

The update stated: “The company is very pleased to report that it is now in bilateral discussions, which are well advanced, with a party to conclude a refinancing to provide the appropriate capital structure to support the group as it trades through the current uncertainty.

“The company is working towards reaching a position where the refinancing will be announced within the next week enabling the company to address the current significant working capital strain on the group and place the group in a position to take advantage of the growth prospects within its addressable markets.

“Should the refinancing not be successfully concluded the group will have to consider its remaining options. 

“A further announcement will be made in due course as appropriate.”

Nmcn added that activity levels across the business are “reasonable although there are performance issues in the group’s Building business unit and challenges on two loss making contracts in Water. It is therefore now expected that this will result in the group reporting a loss for the current financial year.”

The company’s latest estimate of losses for 2020 is £24m.