JRL has confirmed that an overseas investor is close to taking a stake in the business which last month reported it had racked up losses of more than £80m in the past two years.

The firm, which was set up in 1996 by chairman John Reddington, said the past couple of years have been among the most challenging in its history after it was forced to restate its 2022 accounts which resulted in a £47m loss.

The Midgard owner had posted a pre-tax profit of £13m when it filed its 2022 accounts in July last year.

Midgard is building this Passivhaus student residential scheme in Canary Wharf. The job for Urbanest at 2 Trafalgar Way consists of three blocks of 28, 36 and 46 storeys

But in its 2023 accounts, JRL said that the cost of materials and labour on fixed-price contracts “have led to notable increases in the estimated total costs require to complete these projects”.

Now the firm has said it is being handed a funding boost in the form of an unnamed overseas investor.

JRL said: “An international conglomerate and property developer has agreed to invest in the business.

“The transaction, which will see the partner acquire a non-controlling equity stake in JRL, will significantly strengthen the position of the business and allow it to deliver on its strong pipeline.” JRL added that its forward order book was £1.5bn.

The firm, whose group of 14 companies also include concrete frame business J Reddington and London Tower Crane Hire, said that pre-tax losses last year had narrowed – but were still £36m.

Revenue at the business, which employs 2,300 people, was up 8.5% to £826m. Cash at the bank and in hand fell from £117m to £82m, the accounts added.

But Reddington added the firm had turned a corner. “The directors view the financial outcomes in 2022 and 2023 as anomalies, not reflective of the long-term trajectory of the business.

“Our pipeline is robust, with several major contracts that were previously delayed now coming to fruition. We anticipate a more stable economic environment which will alleviate some of the pressures we experienced in 2023.”

The firm added that in April this year it sold an investment property for £12m which saw it book a net cash inflow of £8.5m.