Alfred McAlpine breaks £1bn barrier

Alfred McAlpine achieved a margin of 3.6% last year as turnover broke through the £1bn barrier for the first time.

Ian Grice, chief executive, said: "Over the last four years we have reshaped our business and Alfred McAlpine today is a support services company focused on the built environment.

"We enter 2006 with a record £3.5bn orderbook and over £800m of new business already secured this year. We believe we are well placed to deliver the double-digit growth that we are targeting for 2006."

Turnover (12 months to 31 December 2005) was £1bn (2004 figure: £930m). Pre-tax profit of £38m was well ahead of last year’s £8m result though the 2004 figure which was severely cut back by a one-off £25m charge.

This year’s pre-tax profit was also in danger of being nobbled as McAlpine took a £13m hit in its infrastructure services division. However, this was neatly off-set by the one-off £14m profit resulting from the group’s disposal of its interest in Core Utility Solutions and the sale of two PFI equity stakes - in Mercia Healthcare and South Manchester Healthcare.

McAlpine made a "multiple of over three times" its initial investment in Mercia Healthcare while the second sale generated an eye-watering four-fold multiple.