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5% profit on roads or no bid, McAlpine warns Agency

CONTRACTOR ALFRED McAlpine has warned the Highways Agency that it will not bid for road projects unless it can build a 5% profit margin into its tenders.

fiIf they won't allow us to earn 5% we don't want to work for them, fl said director Ian Grice as the company unveiled its latest set of financial results.

These show that the contractor's commitment to selective tendering for capital projects has helped it produce margins of 5.6% in contracting.

The capital projects division, which includes roads, produced operating profits of £9M on turnover of £159.6M in the six months to 30 June.

This compares with turnover of £178M and operating profits of £9.5M reported in the first half of 2001.

The contractor's other main activity is facilities management.

This division's profits and turnover increased rapidly following the acquisition of the Stiel facilities management business. As a result the division's first half operating profits increased from £1.4M to £7M on turnover up from £50.5M to £170.2M.

Group pre-tax profits after accounting for overheads and interest payments increased from £9.5M to £12M while group turnover rose from £240M to £341M.

INFOPLUS www. alfred-mcalpine. com

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