Highways contractor Colas has sharply reduced its annual losses after a major overhaul of its UK highways operations and a tighter focus on core profitable markets.

The contractor reported a pre-tax loss of £2m for 2024, improved from a £13m loss in the prior year.

The deficit was mainly caused by finance costs linked to unpaid claims on construction projects, but the business returned to operating profitability with a £0.8m surplus as its turnaround plan took hold.