Jerry's Engineering has a three-year contract to construct a large piece of capital equipment for its client. The contract price is £4 million. At the end of the first financial year of the project, material, labour and overheads charged to the job totalled £850,000. Jerry estimates that a further £2.65 million is still to be spent to complete the job. An independent valuer has certified the value of the work completed as £850,000, which the client has paid under the contract as a progress payment. Calculate the amount of profit that Jerry can recognize as having been earned in the current year.