Alfred McAlpine will miss profit target this year

Alfred McAlpine warned the City this morning that it will not meet its profit and earnings targets for the full year.

While announcing the group's interim results, chairman Oliver Whitehead said: "The inability to optimise Infrastructure Services' work mix during this period has restricted growth in group profitability i the first half. This is unlikely to be fully re-captured in the second half, constraining our earnings growth for the full year.

"As we indicated earlier in the year, there have been operating difficultires in Infrastructure Services as the utilities market focuses on regulatory reviews and network sales. However, we are now seeing some recovery, and with the regulatory reviews anticipated to increase expenditure programmes in the sector, this business remains well positioned to achieve strong medium-term profit growth."

The division produced an increased turnover of £167.3m (£147.6m at the half year in 2003) but suffered a 45% drop in operating profit from £5.1m to £2.8m.

The Capital Projects division also had a tough half, producing a lower turnover of £151.9m (£161.8m) and operating profit of £5.9m (£7.2m).

The Business Services division fared much better, producing an increased turnover of £98.3m (£94.2m) and an improved operating profit of £7m (£4.8m).

As a whole, Alfred McAlpine enjoyed a small increase in turnover to £439.7m (£424.5m), but suffered a drop in pre-tax profit  from £12.1m to £9.5m.