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Losses on a massive hospital job have pushed Sir Robert McAlpine鈥檚 contracting arm to a 拢37.8m pre-tax loss, the firm鈥檚 accounts have revealed.

In accounts filed at Companies House, Sir Robert McAlpine (Holdings) limited, the group鈥檚 civil engineering and building arm, reported a 拢37.7m pre-tax loss in the year to 31 October 2013, down from a 拢19.2m pre-tax profit the year before.

The firm reported it had incurred a 拢41m loss in connection with problems on its 拢176m King Edward VII Memorial Hospital (KEMH) redevelopment in Bermuda, which is being carried out by its BCM McAlpine joint venture.

Writing in the accounts, director Ian McAlpine said the project had 鈥渟uffered severe problems with design and performance resulting in a substantial loss, which it has been unable to absorb without monetary assistance from the group鈥�.

He added that the funding provision of 拢41m was designed to cover both funding to 31 October 2013 and 鈥渁n allowance for further funding to cover losses to completion鈥�.

He added: 鈥淭he group has taken a conservative view of the outcome of the project and although the BCM McAlpine has significant claims outstanding no allowance has currently been made for a recovery.鈥�

McAlpine said BCM was only working on the Bermuda hospital job and no other work was being undertaken by the joint venture.

However, Sir Robert McAlpine (Holdings) Limited also reported a rise in revenue or 拢810m in the year to 31 October 2013, up from 拢702m in the previous year.

This was driven by improvements in the UK market where revenue increased to 拢781m in Sir Robert McAlpine鈥檚 2013 financial year, up from 拢664m the previous year.

But revenue in the Caribbean fell to 拢30m in 2013 down from 拢37m in 2012 and revenue from its Caribbean joint ventures rose to 拢282,000 in 2013 from 拢141,000 in 2012.

The problem job in Bermuda also had a negative impact on the results of Sir Robert McAlpine鈥檚 overarching parent group Newarthill Limited.

The group reported a fall in pre-tax profit to 拢5.9m in the year to 31 October 2013, down from a pre-tax profit of 拢21m the year before.

This came despite a rise in revenue to 拢898m in 2013, up from 拢769m in 2012.