Sir Robert McAlpine (SRM) has rebounded into the black in its latest accounts, with the tier one contractor recovering from a severe loss.
The firm generated a pre-tax profit of £10.4m in the year to 31 October 2024 after suffering a £104.6m pre-tax loss the year before.
At the time, SRM cited high inflation, supply chain shortages and the “energy price shock” as the main reasons.
Turnover, meanwhile, improved by 7 per cent from £880.6m to £940.1m in the accounts, released this morning (24 April).
“In response to the turbulence of recent years, in 2023 we implemented our strategy of Focus and Adapt,” said chief executive Neil Martin, who joined SRM in February last year.
“We are now starting to see the benefits of this work, as reflected in our stable performance in 2023/24.”
SRM launched a review of its operations two years ago. At the time, chief financial officer Leighton More said adapting and streamlining the firm would save around £20m a year.
The contractor held a secured order book of £1.3bn at the end of its financial year, and said it was the preferred bidder for an additional £1.2bn worth of work.
“This momentum has continued into 2024/25, with more than £812.8m of work delivered or secured, and a further £129m nearly secured,” it added in the latest accounts.
Cash at bank improved from £100.8m in 2023 to £143.6m.
The firm had no bank loan borrowings and did not pay out a dividend.
SRM set aside more provisions for liabilities, at £27.5m compared with £25.9m the year before. Remedial provisions – which SRM expects will be incurred on remedial works on completed contracts – increased from £13.2m to £22.9m.
The firm also set aside £3.6m to deal with “losses expected to be incurred through to completion of certain contracts”. This was down from £12.7m in the previous accounts.
“Although completion of those contracts may be delayed or deferred beyond the financial year 2025, there is no certainty that they will not be completed in that year,” SRM said in the accounts.
Average monthly headcount fell from 2,083 employees to 1,838, resulting in a lower annual wage bill of £153.1m compared with £164.8m the year before.
Since the period covered by the accounts, the contractor has secured additional works for Agratas at its battery cell manufacturing facility in Somerset, and was appointed by Tata Steel UK to deliver a new electric arc furnace-based steel production facility at Port Talbot (pictured).
SRM was also appointed this month to build the North East Space Skills and Technology Centre in Newcastle.