Support services group Amey suffered another blow on December 9, after warning that a string of one-off costs would dent final profits.

Shares slid seven per cent on the news, to 28p. A year ago Amey, based at Sutton Courtenay, near Abingdon, was worth 400p a share.

It said its bankers remained "supportive" although its debts are forecast to rise to £190-200m by the end of the year.

The group axed 300 jobs earlier this year following the share price crash.

Acting finance director Eric Tracey, who was seconded from accountancy firm Deloitte & Touche, has now completed a preliminary review.

Pre-tax profits are expected to be reduced to about £35m, compared to the £51.5m previously expected by analysts.

The cost of the redundancies, selling loss-making subsidiaries, and the sale of shares in private finance initiatives is likely to be £15m.

Mr Tracey said the group would probably write off £85m -- offset by a £20m tax credit -- because of the cost of the Croydon Tramlink project, the effect of the PFI equity disposal and other money it is owed. Amey is effectively selling its stake in the Tube Lines consortium, bidding to run part of the London Underground.