But firm warns income and profit will slide this year because of covid
Sir Robert McAlpine parent Newarthill posted its highest turnover for five years with the firm seeing income top the 拢1bn mark in 2019, its latest accounts have revealed.
The firm saw income rise 23% to 拢1.054bn in the year to October 2019 鈥� fractionally below the 拢1.063bn it recorded in 2014.
Pre-tax profit bounced back to 拢20.7m after Newarthill crashed to a 拢232,000 pre-tax loss in 2018 after it racked up exceptional items of 拢20.3m following restructuring costs, closing a pension scheme and being hit with an early repayment penalty on a PPP scheme.
In its results filed at Companies House, the firm said this year鈥檚 pre-tax profit was boosted by 拢2.4m following the release of a provision relating to its energy from waste business which it has now pulled out of after racking up a 拢37m loss on three schemes in 2017.
But the firm, which completed work refurbishing Wimbledon鈥檚 No 1 Court during the period and is currently building a new headquarters for Channel 4 in Leeds, warned that revenue would be lower in its current financial year, which ends on Saturday, because of the covid-19 pandemic.
And it said profits would also head south because of covid with sites earlier this year having to close, productivity falling and the firm forking out for a host of new safety processes.
McAlpine chief executive Paul Hamer, who launched a five year revamp of the business last September, said: 鈥淭here is still a great deal of geo-political uncertainty and unpredictability with respect to Brexit and a trade deal, covid-19 and the wider economy but we are grateful to have a healthy pipeline of work and strong and enduring client relationships.
鈥淥ur focus on vital sectors such as healthcare, education and infrastructure stand us in good stead to weather any ongoing economic storms.鈥�
The firm worked on several Nightingale hospitals earlier this year for the NHS while it is also part of the Align joint venture working on the HS2 railway in the Chilterns.
Newarthill said its construction business in the Caribbean saw turnover halve to 拢28m but the firm said the business remained profitable.
The bulk of Newarthill鈥檚 turnover comes from its McAlpine contracting arm with revenue here standing at 拢1.018bn. A further 拢36.5m comes from its PPP and property businesses.
The firm鈥檚 cash balance position improved from 拢162m to 拢176m at its October 2019 year-end.
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