Results for the year to March 31 2024 show pre-tax losses increased to £5.6m from £1.2m last time as turnover stayed steady at £86.4m.

The previous year’s losses prompted the original company founders to buy back a controlling stake in business from its private equity owners and change the strategy and financial structure.

But legacy contracts have hit the numbers again during an “extremely challenging and turbulent year for the business.”

The directors report said during the last five years “short term decisions” were made “specifically around tendering decisions at the cost of the longer-term benefit of the business.”

It added: “The diversification into new markets and focus on revenue growth within prior years had had a negative effect on the business margin percentage and resulted in a number of loss-making contracts.”

The new board said its focus on core markets was now paying dividends with a positive start to the current financial year and a return to operational profit in the first six months.

The latest accounts show staff numbers reduced to 423 from 473.