Restructure returns Sir Robert McAlpine to profit

Aaron Morby 3 months ago
Share

Sir Robert McAlpine chief executive Paul Hamer has returned the family-owned contractor to profit after a business restructure last year.

Paul Hamer pledges to continue to improve subcontractor payment terms now at 35 days

McAlpine delivered a £7.35m pre-tax profit last year after paying out more than £3.8m in redundancy and restructuring costs.

McAlpine, which celebrates its 150th anniversary this year, has adopted a new business strategy that has seen it drop bidding for fixed price work.

It is now pushing for more collaborative working and also has set its sights on gaining more of the lower risk construction management market, where it hopes to generate around a third of future annual revenue.

The shift in bidding strategy saw revenue slip back slightly to £788m from £852m previously.

Hamer, who took the helm at McAlpine two years ago after it suffered a series of loss-making years, said the firm was now firmly back on track.

“This performance, alongside continued financial resilience and a healthy secured pipeline of work, represents a solid stepping stone for the business.”

He added: “We remain cautious but optimistic about our prospects in 2019 as our order book continues to grow year on year.

“We will continue to move the company away from fixed priced risk to a more collaborative approach with our clients and supply chain partners.”

He said that McAlpine was committed to nurturing the supply chain and had improved payment period to 35 days over the year.

“We continue to grow our market share of the construction management sector which provides a strong income stream with a lower level of risk than traditional contracting.

“With our new five-year strategy in place, we have the opportunity to build on our strengthening performance as we work to deliver on our ambition to become the best place to work in the construction industry and the best builder in the UK,” he added.

The firm ended the year with cash of £73m up from £66m.

Latest news

Yorkshire Water reveals winners of £1bn civils deal

18 contractors win places on AMP7 programme: Full list
47 mins ago

Balfour Beatty starts tunnelling at Hinkley Point

Firms starts first of three underground tunnels for cooling water
10 hours ago

Kier plunges to £245m loss

Kier chief Andrew Davies says core business is in good shape as recovery plan advances
15 hours ago

Construction Manager of the Year crowned

CIOB to review awards after all 80 finalists this year were men
16 hours ago

Lovell signs deal to build 4,000 West Midlands homes

Lovell Partnerships to build homes on brown field land over next eight years
16 hours ago

Engineer killed working on Waterloo Station travelator

Fatal accident during maintenance work at underground station
1 day ago

Chain fails during crane lift on Robertson hotel site

Lifting operations suspended at site by contractor
2 days ago

Caddick lands £10.7m first phase of Cheshire business park

Developer Chancerygate awards its largest ever contract
1 day ago

HS2 presses ahead with £3.5bn phase 2a bidders day

October bidders day for design and delivery partner and seven civils packages on West Midlands to Crewe route
2 days ago

Public inquiry into hospital construction problems

Patient concerns lead to probe into two Multiplex hospital jobs
2 days ago

BAM wins £20m Leeds business school block

Work will start in November on six-storey block for Leeds University
2 days ago

McLaughlin & Harvey lands Liverpool2 phase 2

£20m contract to expand deep water container terminal
2 days ago

Potash mine cash crisis forces construction slowdown

Developer has six months of cash left for construction
3 days ago

Investment bank to build 13-storey tech tower in Glasgow

Construction to start next year on new 270,000 sq ft building for JPMorgan Chase
2 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
1 year ago

Third contractor to finish jinxed school job

Local contractor Feltham Construction to complete Newbury school project
3 days ago

Aberdeen hospital project cost review as price soars

Graham final tender price reported to be 20% above original cost estimate
3 days ago

Sisk confirmed for £70m York Central civils

Firm will work up designs for a bridge, spine road and National Rail Museum rail link
3 days ago

Aldi plans new supermarket every week

840-store network to be expanded to 1,200 by 2025
3 days ago

Morrison to build £63m innovation hub in Kilmarnock

HALO to be build business centre on former home of Johnnie Walker whisky
3 days ago

Shapps halts woodland clearance during HS2 review

Transport secretary says woodland removal must wait for Oakervee review outcome
3 days ago

£800m Fawley oil refinery expansion to start this year

Ultra-low sulphur diesel plant will employ 800 during construction
3 days ago

Watkin Jones gets go-ahead for Leicester waterside scheme

Mixed student and rental flats scheme at Bath Lane approved
3 days ago

Balfour and Vinci JV signs £1bn HS2 station deal

Contract awarded while procurement challenge continues
3 days ago

Osborne chief operating officer exits

Rennie Chadwick departs as 16 jobs axed in Osborne streamlining
4 days ago

Dermot Clancy dies in tractor accident

Clancy Group joint chairman died at his home last Tuesday
4 days ago

Crossrail sparks in pay row as more workers flood Bond Street

Overtime rates of up to £67.50 an hour being offered to entice new electricians
4 days ago

Byrne back to profit after London tower orders

Multiplex skyscraper projects turnaround fortunes of framework specialist
4 days ago

Roofer killed in scaffold ladder fall

Court hears how scaffolding was erected by unqualified worker
4 days ago

World’s largest crane powers up at Hinkley Point

250m-tall Big Carl will be on site for four years
7 days ago

Contractor services