Engineer Redhall said the worst is behind it as it announced a halving in annual profits after what it described as “another testing year”.
The Wakefield-based group has been hit by a number of contract issues, most notably a courtroom battle with Vivergo over a biofuels plant.
The group said the Vivergo court case is behind it and it now awaits the verdict of the judge to enable it to move forward.
On a brighter note, Redhall said its partner Hertel has been informed that the two companies have been awarded the renewal of the multi-disciplinary site works contract at the Sellafield nuclear plant. This contract is estimated to be worth £26m to Redhall over four years.
Redhall, which supplies services including blast-proof doors for the nuclear industry, has endured a rocky 18 months, hit by a profits warning in April over production.
Yesterday it said underlying pre-tax profits fell from £3.9m to £1.9m.
Revenues fell from £126.6m to £119.5m.
Chairman David Jackson said: “The prospects for the next 12 months look encouraging even in advance of the award of nuclear new build work, with strength in the oil and gas market and opportunities afforded by the Crossrail project in London where we are a specified supplier.
“The opportunities for our manufacturing business in particular look outstanding over the next three years.
“We are looking to address the balance between contracting and manufacturing with more emphasis being placed on the manufacturing side of the business. This should enable the group to improve its overall margin and reduce the risks associated with site activity.”