The provision is also understood to include the potential outcome of ongoing talks with individuals not included in the BSR Cohort 1 group civil case settlement.

Rydon said its settlement is being covered by its insurers.

Lawyers for the BSR group took action against 22 firms in total. This included cladding maker Arconic, Saint Gobain (parent company of insulation manufacturer Celotex), Kingspan (another insulation provider), main contractor Rydon, cladding subcontractor Harley Facades, fire engineering consultant Exova, architect Studio E , fire risk assessor CS Stokes and Associates, and Whirlpool (the manufacturer of the fridge freezer starting the fire), council landlord, the Royal Borough of Kensington and Chelsea, and the Kensington and Chelsea Tenant Management Organisation.

The civil claim is separate to the public inquiry into the fire, which finished taking evidence in November 2022 and is expected to issue its final report later this year.

A spokesperson for Rydon said: “Rydon, along with other companies and public sector bodies, has participated in an alternative dispute resolution process which related to a large number of civil claims brought by bereaved, survivors, and local residents of the Grenfell Tower disaster. Following productive and co-operative engagement between the parties, settlement terms have been agreed with the vast majority of those affected without the need for a prolonged legal process.

“Rydon continues to express its deepest sympathy to the Grenfell residents and their families.”

In latest published accounts to September 2022, Rydon Group Holdings revealed a pre-tax profit of £6.1m level with last year from revenue slumped 35% to £91m.

Rydon Homes was the main profit driver left in the group generating a pre-tax profit of £11m up from £3.7m previously.

Rydon Construction, which has been wound down with the exception of working through existing legacy contracts, recorded a £3.9m loss from £5m revenue.

Rydon Maintenance, involved in the Grenfell project, delivered a £700,000 pre-tax profit down from £900,000 previously on revenue of £43m.