For the year to 31st October 2017 Sir Robert McAlpine made underlying profits of £14m and the company boasts a pipeline of work that is stronger than it has been for more than 10 years.
However, due to work undertaken on three energy from waste projects, the company posted a loss after exceptional items of £23m.
Just like Costain and Interserve before it, who have also run into problems in the sector, McAlpine says that it will not be bidding for any more contracts in the future to build waste to energy plants.
While the 2017 accounts show red ink, the privately owned family business maintains strong cash liquidity and remains without any recourse to corporate borrowing, it said.
And 2018 seems to be going better, with the first six months of the current financial year showing a profit of £13m, which is in line with budget and expectations.
Chief executive Paul Hamer said: “Whilst, our 2017 financial results are disappointing and directly attributable to our exposure to the waste to energy sector, I am encouraged that our reinvigorated focus on engineering and operational excellence is already having an impact on our business performance. Our results for the first six months of 2018 are in line with budget and our secured order book is stronger than it has been for the last 10 years.
“We continue to build on, strengthen and apply the values and operational focus that lies at the heart of our business: a commitment to the highest standards of safety; quality; engineering excellence; sustainability; timely delivery; commercial viability and an unswerving focus on the needs and aspirations of our clients.
“Furthermore, the company has a particularly strong current portfolio and future pipeline of construction management work in London which helps to create a more appropriate balance of risk across the company. The focus will be to build upon Sir Robert McAlpine’s already recognised strengths in key sectors, namely commercial office, build to rent, health, retail and education.
“Our business is placing increasing focus on technology and creative digital innovation. We have also stated our total commitment to leading by example on equality, diversity and inclusion to bring about industry wide changes. We also continue to be committed to treating all of our sub-contractor partners fairly, and operate fair payment practices.
“Whilst the performance for the first six months of this financial year is encouraging, we recognise that there is a great deal of work ahead of us as we continue to build for our 150-year anniversary in 2019.”