Sir Robert McAlpine saw its profit margin squeezed to 0.86 per cent last year, although a hefty increase in revenue kept its profit stable.<\/p>\n
The family-owned contractor turned over \u00a31.07bn in the year to 31 October 2022, an increase of \u00a3150m \u2013 or 16 per cent \u2013 on its previous year. However, its pre-tax profit increased by just \u00a3150,000, to \u00a39.3m. In its previous financial year, Sir Robert McAlpine had a profit margin of 0.98 per cent.<\/span><\/p>\n The company put aside \u00a320m in provisions, with \u00a38.8m relating to remedial work on completed contracts and \u00a311m relating to loss-making jobs. Of the provisions, \u00a32.8m was a restatement of a portion of the \u00a324m remedial provisions made by the group last year.<\/span><\/p>\n Sir Robert McAlpine\u2019s cash decreased slightly, from \u00a3106m to \u00a3100m, but the company said it had \u201cno debt other than a nominal level of financial leases\u201d. It spent \u00a33.2m on directors\u2019 remuneration last year (up from \u00a32.8m), with the best-paid director receiving \u00a3841,000 (up from \u00a3765,000).<\/span><\/p>\n In the results, Sir Robert McAlpine chief financial officer Leighton More said: \u201cTh[e] recovery in activity levels post the global pandemic was tempered by subsequent supply chain, labour-availability and inflationary pressures. The challenges in the trading environment were further exacerbated by events that unfolded in Ukraine in February 2022.\u201d<\/span><\/p>\n In April, the contractor cut about 40 jobs as it restructured its business around sectors rather than regions. More said the \u201cadaptation and streamlining\u201d of its model would save \u00a320m per year once complete in 12 to 18 months\u2019 time.<\/span><\/p>\n \u201cA lower cost base will allow us to navigate the ongoing challenging economic environment, as well as to maximise operating margins, as the global economy recovers from the inflation- and energy-price shock that has impacted the last 12 months,\u201d he added.<\/span><\/p>\n Paul Hamer, chief executive of Sir Robert McAlpine (SRM), said: \u201cWe have once again had to face unprecedented challenges as an industry.<\/span><\/p>\n \u201cRecently, we took our next strategic step, evolving SRM for future generations and setting up the business for long-term success,\u201d he said. \u201cAs a result, we have transitioned to a national sector-focused operating model, with centres of excellence that will provide swift, expert support to our projects, creating more value for our clients.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Sir Robert McAlpine saw its profit margin squeezed to 0.86 per cent last year, although a hefty increase in revenue kept its profit stable. The family-owned contractor turned over \u00a31.07bn in the year to 31 October 2022, an increase of \u00a3150m \u2013 or 16 per cent \u2013 on its previous year. However, its pre-tax profit …<\/p>\n","protected":false},"author":90383,"featured_media":483231,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[552,542],"tags":[],"class_list":["post-483224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial","category-sir-robert-mcalpine"],"yoast_head":"\n