Clugston said  the market “was without doubt the most challenging in years.”

It added that several project starts were delayed by clients due to economic uncertainty resulting in profits falling to a seven year low.

Supply chain problems were also highlighted due to a lack of “sufficient good quality resources”.

Clugston said: “This was exacerbated by the significant increase in activity.

“This issue led to productivity and quality issues on several projects, depressing the level of profitability at project level.”

Clugston has now carried out a strategic review of the business and will focus on three key markets: Energy from Waste, construction and facilities management.

It said: “2018 will again be a challenging year, but we are better placed to deal with some of the issues we experienced this year.”

Bob Vickers, chief executive, said: “Despite the challenging conditions in several of our key markets, together with investment in the restructuring, we have delivered another credible financial performance.

“With substantial growth in revenue, as well as accumulated cash balances of £30m and no bank debt, we continue to invest for the future and look to further develop our business by investing in our teams across all our divisions.

“Finally, whilst the markets in which we operate remain challenging and we believe this will remain so for the foreseeable future, I am sure that the restructuring we have undertaken, particularly within the construction area of our business, will create the focus and drive to enable us to continue to deliver successful projects and satisfy our customers and partners.”