McAlpine profit up again as firm says restructure paying off

Sir Robert McAlpine improved profit again last year as the rebuild started by chief executive Neil Martin continues to pay off.

In its latest set of numbers announced this morning, the firm saw pre-tax profit rise more than 50% to £15.4m in the year to 31 October on turnover which stayed flat at £946m.

McAlpine, which had been forced to book a £105m loss two years ago, said that its managed turnover, which includes its fees from construction management work, was also flat at £1.2bn.

Cash at the year-end was down £3m to £141m with the firm adding it was debt free. Its order book was also flat at £1.3bn.

Under Martin’s stewardship, who joined two years ago, the company is focussing on three sectors – industrial, commercial and healthcare.

“This clarity of focus has enabled the business to better anticipate market needs, deploy specialist expertise where it adds most value, and continue to attract both long-standing and new clients,” McAlpine said.

It added: “Across the year, Sir Robert McAlpine has remained disciplined in targeting the right opportunities for long-term customers, with a strong emphasis on early contractor involvement, collaboration and operational excellence.”

In a note on directors’ remuneration in the accounts, McAlpine said it paid out £155,000 in “compensation for loss of office” during the period although it did not specify to whom.

Directors to leave the board during the period included head of buildings Grant Findlay, head of infrastructure Steve Hudson and head of engineering Andrew Hunter who also left the business last year.

And the accounts show that the highest paid director, also not named, was handed just over £1.2m last year – up from the £1m they were paid last time.

Martin said of the improved results: “Our reorganisation has strengthened leadership alignment and brought us closer to our clients, enabling us to respond more effectively to their needs.”

“Our strategy is delivering consistent financial performance, supported by a robust pipeline and a positive cash position.”

Its ongoing jobs include the 2 Finsbury Avenue tower in the City for British Land which topped out earlier this year and a scheme to build a new battery cell manufacturing facility in Somerset for Tata subsidiary Agratas.

The number of employees during the period fell 11% to 1,630.