The building services contractor revealed in October 2016 that it had uncovered financial irregularities within the accounting function of subsidiary DG Robson Mechanical Services. The cost of the fraud was estimated to be at £3.3 million.

In an update to the City today Clarke said “it has reached an out-of-court settlement with a former employee of DGR and related parties in respect of the misappropriated funds.”

It added: “Under the terms of the settlement agreement, the Company will receive aggregate cash payments of £1.43 million on or before 31 December 2017 (unless the Company agrees to an extension of the final settlement date) in full and final settlement of all claims by the Company and its subsidiaries against the individual concerned and related parties.

“The Company continues to pursue other third parties in order to recover the balance of the misappropriated funds.

“It is too early at this stage to estimate the quantum of any further recovery.”