THERE are "challenging" times ahead for Worcestershire construction giant Thomas Vale Group, where losses have widened and sales have slipped.

Newly filed accounts have revealed losses have widened by £6.5m at the Stourport-on-Seven company and sales have dropped by more than 37m. The set-backs are attributed to ongoing challenges in the market, but directors say they have been successful in realising new opportunities with "significant levels" of new orders secured.

In fact the business is yet to make a profit since it was taken over by a subsidiary of French construction giant Bouygues in 2012. In the year to December 31, 2014, revenues fell to £109.9m from £147.7m a year earlier, while pre-tax losses widened to £10.3m from £3.8m.

A directors' statement accompanying the accounts said the decline was due to ongoing challenges in the locations it traditionally serves. However, it added that the group had "continued to be successful in realising new opportunities" and continued to secure "significant levels of new orders" in 2014.

"Although market conditions have been challenging in recent years, our reputation across the areas in which we work and a strong parent company provide a solid foundation for the future," it said.

Thomas Vale can trace its roots back 140 years when it was founded by the Victorian engineer of the same name. Thomas Vale Construction, based in Stourport is the main contractor of the group, which also has operations in Birmingham, Hereford, Oldbury, Kidderminster, Wolverhampton and Stoke.

During the same period, Bouygues (UK) Ltd turned over £331.2m, a significant increase on 2013's sales of £216.6m.