The Group said it is expecting £4m in contract write-downs this year due to performance issues in its Regeneration division.

In a statement, Lakehouse said: “This includes a number of contract settlements on which there is a range of potential outcomes for the Group, both in terms of cash flow and impact on the Income Statement.

“Management anticipate there are likely to be further write-downs, during the current financial year as we seek to close out these issues with clients.”

In addition, a recent battle for control of the boardroom has cost the company £1.5m.

Mr Holt added: “Elsewhere in the Group we are making progress and taking action on a number of operating challenges in the Group, especially on contract settlements within the Regeneration division. As previously reported, the Board remains very focused on restoring shareholder value.”

Lakehouse will install domestic smart meters to over 450,000 units across Northern Scotland, Wales and North West England during the course of the five-year deal with Scottish Power.

As part of the contract, the company will invest around £1.5m to train over 100 dual fuel engineers.

Bob Holt, executive chairman, said: “We are delighted to have secured this significant contract for our meter installation activities as well as significantly expanding our relationship with Scottish Power.

“This is an important award in helping to diversify our Energy Services division, reducing its current level of reliance on energy subsidies and particularly the Energy Company Obligation, a policy currently being consulted on by the UK government.”