Profit slump comes as contractor picked to build Olympic Stadium writes off £2.6m in 2007

Sir Robert McAlpine has posted a 14% fall in pre-tax profit from £53.1m to £46m for the year ended 31 October 2007.

The fall came despite a 45% surge in turnover from £1.25bn to £1.82bn, which represented a margin drop from 4.2% to 2.5%.

Last year’s margins were so healthy due to a £20m recovery cost on Dudley Hospital in the Midlands. Extra costs in 2007 also included write-offs of £2.6m (2006: £948,000).”

The builder of the 2012 Olympic Stadium was unavailable for comment on the figures but a statement released described the year as “very busy and successful”.

The highest-paid director received £737,972 (£664,261) and the average salary for its 2,834 staff was £54,600.

The £1.82bn turnover included:

  • Contracting - £1.34bn
  • Property - £28.7m
  • PFI (including joint ventures) - £101.1m
  • Wind energy - £318,067.

Last month it was revealed that the company had been dropped from two major developments, including the flagship £100m Land Securities Park House scheme in central London. It was also dropped from a £140m retail development in Newport, south Wales.