The firm had previously warned several months ago that the precise outturn for the current financial year depended on the timing of certain key contracts, combined with any potential impact from continuing material price inflation and supply chain constraints.

Mark Smith, CEO of Billington, said that it had now become evident that the completion of certain key projects would not take place by year-end, impacting the profitability, and to a lesser extent revenue.

He said: “2021 has been dominated by the continued challenges arising from the pandemic for both Billington and its clients alike.

“The construction sector is suffering material and labour supply constraints that have affected the delivery of projects and delayed anticipated completion dates.

“As a result, this has adversely impacted this year’s profitability.”

He added that the delayed profit recognition combined with a strong project pipeline had provided greater confidence Billington would meet expectations for next year.

Smith said: “Tendering opportunities remain buoyant and of a good quality, together with a good orderbook provides an increased degree of confidence for 2022 and beyond.”