Galliford Try, whose Linden Homes business generated nearly £1bn in turnover last year, is to cut its activity in its construction operation by nearly a quarter as it focuses on three key areas and retreats from other markets.

Earlier this month the firm said it was reducing its construction workforce by 10% – 350 people – as a result of losses which have mounted up on problem contracting jobs including the Aberdeen bypass and Queensferry Crossing scheme near Edinburgh.

Profit at its construction operation will be hit by the impact of the review, including a writedown this year of £40m arising from the restructuring and legacy issues.