The group says it is "negotiating the payment of significant Crown liabilities and the raising of additional funding to fulfil this requirement remains a matter of priority".

At its interim results in September the group noted that trading in the first 12 months following the acquisition of Norman Broadbent would be worse than it could have originally anticipated.

It said this was the result of the rapid and unexpected deterioration in the economy at the start of this year.

The group also said that working capital had been severely squeezed as a result of the fallen revenues.

In its latest trading statement, the board said it was pleased to report that trading conditions had improved in the second half, the order book for the first quarter of 2010 had grown and Norman Broadbent had won `preferred provider' status with several major FTSE companies.

In addition, the cost cutting undertaken in the first half had resulted in the group being able to trade profitably on a monthly basis, with the further benefit that cash outflows experienced earlier this year had been stemmed in recent months.

Story provided by Business Financial Newswire