UP to 250 jobs at an embattled infrastructure company, which helps to maintain roads, rail and utilities across the UK, are at risk in Scotland.

May Gurney, which recently announced losses of £10 million, said it was to scale back its operation after a major client, Perth-based Scotia GasNetworks (SGN), said it was to cut back on contracts.

Staff at Aberdeen, Dundee and Falkirk are at risk with a consultation period on future workforce requirements under way,

A statement said: "While May Gurney will continue to work with SGN in a strategic partnership, this decision will result in a significant reduction in the work we undertake for the group in Scotland and, also, our staffing requirements going forward.

"As a result, we have entered into consultations with our staff and anticipate that up to 250 people could be affected by this development."

May Gurney, which is based in Norwich and employs a total of 600 people, issued three profit warnings earlier this month with its chief executive Philip Fellowes-Prynne leaving the company amid a slew of bad news.

Willie MacDiarmid, a former ScottishPower director, was named as interim boss with claims he had the right knowledge to take the company forward.

May Gurney confirmed in June that the facilities division, which represented 7% of the company's £695m turnover, was set to close down once existing contracts are fulfilled.

The firm said the division had a disappointing performance and took a £10m hit to shutdown its operation, which primarily focussed on the building of schools.

In a further blow, the company's share value plunged 45% earlier this month with the company blaming operational difficulties at two waste recycling projects in England and the ongoing problems with its facilities services business.