SEVERN TRENT last week wrote off £4.1M following a decision to turn its Haswell Consulting subsidiary into an in-house operation.
It is transferring most of Haswell's 207 engineering staff to in-house departments within its Severn Trent Water division.
The water company decided in March to dump the Haswell name and stop bidding for external work.
An announcement on Haswell's website reads 'Haswell Consulting Engineers regrets to announce that it is no longer seeking new commissions.
'We are, however, fully committed to completing our existing obligations and recovering our entitlements on current contracts.' Severn Trent blamed the decision on 'a number of years of difficult trading and the developing litigious nature of the construction market'.
It has pulled out of a joint venture with Costain which had won a five year framework deal with Yorkshire Water.
Haswell was mainly a water consultant and generated fees of £18.1M last year compared with £21.8M in 2003, according to NCE's Consultants File 2005.
Severn Trent also announced that its pretax profits fell from £440.6M to £438.6M on turnover up from £2.01bn to £2.08bn.