Police have launched a fraud investigation into Alfred McAlpine's Slate division as the contractor yesterday revealed the scandal's impact on its annual results.
A 'systematic misrepresentation of production volumes and sales' by senior managers at Slate wiped £22.9M off the contractor's reported revenue and pre-tax profit for 2005 and 2006.The adverse impact of the fraud meant that while Alfred McAlpine's total revenue rose from £1.07bn in 2005 to £1.12bn last year, pre-tax profit fell from £24.7M to £18.7M across the same period.Alfred McAlpine chief executive Ian Grice said: 'The discovery of extensive fraud within our slate business has clearly overshadowed what would otherwise have been another successful year for Alfred McAlpine.'The extent of the fraud and cover up within Slate has been a shock to us all and is most disappointing, but we have responded quickly and decisively.'A £6M investigation by law firm Ashurst and accountant Deloitte launched in February went through Slate's accounts back to 2004 and revealed that the scandal would cost Alfred McAlpine £56M before tax. The firm has now asked the police to investigate the matter.The £56M figure includes the £22.9M loss of revenue and pre-tax profit, Ashurst's and Deloitte's fees, and a £27.1M loss following reassessment of the value of Slate's assets.