Parent company Newarthill makes 拢53.4m pension scheme writedown

Sir Robert McAlpine鈥檚 parent company Newarthill has posted a third straight pre-tax loss, after a 拢53.4m pension scheme hit overshadowed improved profitability for its contracting business.

In results filed at Companies House, Newarthill posted a 拢43.2m pre-tax loss for the year to October 2016, reduced from pre-tax losses of 拢50.5m and 拢67.8m the previous two years.

The latest loss was caused by a 拢53.4m exceptional writedown connected with reassessing the firm鈥檚 pension liabilities.

Without this, the firm returned to an underlying pre-tax profit of 拢10.2m, after finishing a raft of loss-making problem jobs.

Sir Robert McAlpine completed all its problem jobs during the financial year and incurred 鈥渁ll of the substantial costs鈥�, the accounts said.

The firm confirmed it was targeting expansion in frameworks, public sector work and civil engineering and expects both turnover and profit to grow 鈥渋n 2017 and beyond鈥�. Revenue was up 9% to 拢869.6m, up from 拢799.7m.

Sir Robert McAlpine itself has been without a chief executive since last July, when Tony Aikenhead suddenly stepped down from the role after less than a year.

A Sir Robert McAlpine spokesperson said the search for a replacement 鈥渉as progressed well and we will be making a statement in due course.鈥�

During the results period, Sir Robert McAlpine won a framework deal for redevelopment of British Land鈥檚 Broadgate complex in the City of London, completed work on the Victoria Gate shopping centre in Leeds for Hammerson, and started work building a new retractable roof for Wimbledon No 1 Court (pictured).

Newarthill鈥檚 accounts added: 鈥淭he United Kingdom construction market remains highly competitive and the central London market in particular has added uncertainty following the referendum result on EU membership.

鈥淒espite this, with the completion of our legacy contracts the 2016 results show a dramatic improvement over the previous year.鈥�

Gavin McAlpine, non-executive chairman of Sir Robert McAlpine, said: 鈥淲e are progressing our strategy to focus the business around growth, diversification and resilience鈥�

鈥淲ith legacy projects behind us, the business will continue to develop and grow, built on the strong foundation of engineering excellence that remains at the heart of the business.鈥�

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