Sir Robert McAlpine plunges to £110m trading loss

Aaron Morby 5 months ago
Share

Sir Robert McAlpine slumped to a £110m operating loss and tumbled below £1bn revenue in a torrid year to October 2023.

Neil Martin, McAlpine CEO, says the business is back on track this year after several major contract wins
Neil Martin, McAlpine CEO, says the business is back on track this year after several major contract wins

The extent of trading losses emerged after assessing final positions on four price-based contracts, which completed in 2023 or are due to complete this year.

Revenue fell 19% to £881m amid the slowdown in the building market while the business endured a net cash outflow of £82m over the year.

To support the business, the McAlpine family directly funded a £60m cash injection last year and implemented a static review to refocus the business on key growth markets.

Neil Martin, who joined McAlpine in February to replace Paul Hamer as chief executive officer, said: “We faced a challenging year in 2023, but our resilience and the support of our shareholders allowed us to weather the storm.

“Thanks to our focus on operational excellence and on targeting quality work-winning opportunities for long-term clients in our core sectors, we are playing to our strengths.

“We have already seen a positive shift in performance in the first half of 2024. I have every confidence that the business is on the right path for long-term success.”

He added that in addition to the liquidity provided by shareholders, trading in the first half of the 2024 has been cash positive.

McAlpine ended the first six months of this year with £105m in cash and an order book totalling £1.4bn, an increase of £271m since the end of last year.

Martin said first-half revenues have been restored to around £500m and McAlpine’s margins had returned to industry norms.

The firm’s order book has been swollen by some flagship contract wins.

In commercial, McAlpine was recently appointed to deliver 2 Finsbury Avenue, a £500m dual high-rise mixed-use building in the heart of Broadgate, its sixth scheme under the Broadgate framework.

In the growing industrial market, McAlpine this month secured the first major build project at the planned £4bn giga battery factory in Somerset.

In healthcare, its Integrated Health Projects joint venture with Vinci Building scored a string of contracts under the ProCure23 Framework.

Martin added: “Currently, our pipeline is strong and our committed order book for 2024 stands at 99% from secured and nearly-secured work.

“As predicted, this is driven by core clients and a strong pull by some new clients who are attracted to working with us due to our reputation for engineering excellence and solving complex problems.”

Latest news

Go-ahead for City of London’s tallest tower

1 Undershaft building will equal the Shard in height
2 days ago

Construction T Level scrapped due to lack of demand

Courses canned after less than 100 sign-up for latest round
3 days ago

Five firms clinch £300m Greenwich Uni framework deal

McLaren, Wates, Morgan Sindall, Vinci and Willmott Dixon secure places
2 days ago

Hill Group strikes first Build to Rent deal

House builder agrees finance with Lloyds Living to start Stevenage scheme
2 days ago

Construction output hit by fall in repair and maintenance

Industrial and commercial new work grows despite wider fall in activity
2 days ago

Wates transfers pension scheme to “superfund”

Pension management specialist Clara to take charge of £210m fund
2 days ago

Muse hires new development director for North West

Tom Darby joins from developer Bruntwood
2 days ago

Bid rigging probe launched into school repair work

Firms raided this week with focus on roofing contracts
4 days ago

McLaren hires ex-ISG regional boss for north east expansion

Andrew Beaumont becomes MD of new Yorkshire and North East business
3 days ago

Government commits to four new prisons in seven years

£2.3bn pledged for new prison build programme
4 days ago

Road and rail delays hit revenue at Van Elle

Turnover drops 5% as markets remain challenging for piling specialist
3 days ago

Boot reports ‘noticeable improvement’ in planning system

Government planning reforms already unblocking council planning
3 days ago

Go-ahead to revamp former London city hall

Project will straighten the building's leaning profile with terraces to every level
4 days ago

United Living to divert Midlands gas pipeline

600m pipeline diversion clears way for M54 to M6 link road construction
3 days ago

Credit insurance saves Billington from ISG hit

Steel specialist puts on extra shifts at its plants to cope with demand
4 days ago

M&E specialist Dodd doubles profit on retrofit surge

Family-owned Telford specialist delivers record revenue of nearly £250m
4 days ago

Go-ahead for 800-home Croydon dual towers

One Lansdowne Road build to rent scheme to cost £260m to build
4 days ago

Construction inflation set to return raising tender prices

End of 2024 to mark the bottom of present inflationary trough
4 days ago

Start date for vast Balfour and Costain carbon capture power job

£4bn Teesside project to start construction next year creating 3,000 jobs
5 days ago

Plans go in to start revamp of North Finchley town centre

Developer Regal unveils first details of Barnet masterplan
4 days ago

Glencar bags £18m Big Yellow London store

Six-storey stoarage centre to be built at Staples Corner
4 days ago

Plan unveiled for 31-storey London Fenchurch Street tower

Demolition work to start in 2026 for new office tower
5 days ago

Vinci Building buys tower cranes for first time

Contractor invests in two WOLFFKRAN all-electric cranes at £138m Sheffield site
5 days ago

30 local firms land United Utilities £500m framework

Minor works deal win for North West civils and M&E specialists
5 days ago

Restructure pays off as Higgins returns to profit

Housing contractor recovers from £25.9m loss last year
5 days ago

Former Heathrow boss joins Mace in board rejig

Firm completes string NED appointments to expanded group board
6 days ago

Planning officers to get powers to bypass committee stage for housing

Rayner reform plan to cut out local council planning committees
6 days ago

National Insurance hike to delay construction recovery

Arcadis paints varied picture with full recovery delayed until 2026
6 days ago

Gratte Bros rides out cost rises with profit increase

M&E specialist warns of further upward pressure on wage costs
6 days ago

Sellar’s 36-storey London City office tower approved

Demolition work to start in 2026 at 60 Gracechurch Street site
1 week ago

Contractor services