Utilities contractor McNicholas is to make 20 staff redundant as a result of its withdrawal from the design-and-build market.
Another 40 employees will be relocated to other areas as the firm reorganises to concentrate on its core services in the utilities, transportation and highways maintenance sectors.

A company statement said its core businesses had grown strongly in recent years, in contrast with its design-and-build work, which was focused on Ministry of Defence and industrial projects.

The statement said: "The recent deferral of projects in these sectors and changes in procurement policy, added to the fact that existing contracts are all due to complete shortly, has resulted in the decision for the company to focus on its strengths."

The statement said that as a result of market conditions the design-and-build operations had become unprofitable with a diminishing turnover of £11m last year. The company's overall turnover is £150m.

Michael Doherty, the managing director, said: "In order to maintain our successful development, it is essential that we focus on what we do best.

"The timing is ideal for us to withdraw from these peripheral activities." He said that the decision had not been taken lightly and that he regretted having to lose some staff.

He said the company could now concentrate on growing organically and by acquisition and that the strategy would underpin its financial strength and profitability.