Hull civil engineering firm Spencer Group returned to profit last year, after a “substantial loss” on one project hit its figures in 2017.
The business, headquartered in Humber Quays, recorded profits before tax of £1.66m in the year ending March 31, 2019 – up from the £9.75m loss it made in 2017/18.
At the time, Spencer Group maintained it was "trading profitably," but admitted a “substantial loss” on a project it was involved in was to blame for the 2017 figures.
The engineering firm has now moved out of the red, new accounts have shown, as it made an immediate return to profit.
Spencer Group recently also won an £18m contract to complete an extensive maintenance project on the Erskine Bridge in Scotland.
The work is expected to take four years to complete.
Charlie Spencer, executive chairman at Spencer Group, wrote: “The directors viewed this year as being one of consolidation following on from the previous year, where the result was unfortunately skewed materially by a substantial loss on one contract.
“The group enters the new financial year to March 31, 2020 with secured work in hand of £77m and a pipeline of £213m from which to draw its opportunities.
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“The group continues to trade profitable, and the directors see this profitability as being sustainable given the levels and mix of both secured work and the future pipeline.”
Spencer Group won 11 tenders during the 2018/19 year.
Despite profits returning to the firm in the last financial year, turnover dropped from £74.9m to £55.1m.
The new results do however mark a more positive year for Spencer Group, after it was hit hard by losses on a single project in 2017/18.
The details of that project have not been disclosed. However, the new accounts said: “As a result of the significant time overrun in completion of the project, liquidated damages of £4.5m were incurred by the group along with associated additional costs with this leading to an overall loss £11.4m on delivery of the project.
“Practical completion was achieved on the project on September 26, 2018.”
Spencer Group is still in the running to play a part in a major £500m contract to deliver new trains and a depot for the Tyne and Wear Metro.
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The firm has teamed up with train building giant Hitachi for the bid, which was announced last December.
Hitachi was last month announced as one of just three companies still in the running for the lucrative contract, alongside Spanish firm CAF and Swiss-headquartered Stadler.
From 2022, the existing Tyne and Wear Metro fleet will be replaced with brand new high technology trains, and maintained at a newly-constructed site at Gosforth, Newcastle.