Last updated January 4th 2023
Sir Robert McAlpine Group (Newarthill)
Family-owned Sir Robert McAlpine is one of the largest and oldest building and civils companies in the UK, with a history dating back over 150 years.
Headquartered in Hemel Hempstead, Sir Robert McAlpine (SRM) operates across the UK from offices in major cities (including Bristol, Knutsford, London, Birmingham, Manchester, Newcastle and Woking) and the business employs around 2 160 staff. The group”s ultimate parent company is Newarthill Ltd.
High profile projects which it has completed include the Olympic Stadium, O2 Arena, Emirates Stadium, the Eden Project, Cabot Circus in Bristol and the M74 in Glasgow and the refurbishment of Big Ben.
More recent major projects where SRG has worked include the restoration of the Ritz hotel,1, Broadgate in the City (for British Land & GIC and one its largest design & build schemes) and major residential schemes at Tower Works in Leeds and a major commercial scheme at One Centenary Way in Birmingham.
The group”s core services cover construction support, pre-construction, special projects, customer care, McAlpine Design Group, capital ventures and Axis Land Partnerships.
Today, the company works across all major sectors and its £930-plus million turnover covers – healthcare and education in the public sector and in the private; the offices, leisure, accomodation, industrial, mixed-use, healthcare, education and civils (roads, rail, development and energy infrastructure) as well as new growth sectors such as battery tech and pharmaceuticals. Around half its revenues come from key clients, which include British Land the developer of Broadgate.
After reporting losses in 2020, Sir Robert McAlpine”s annual report published in mid-2022, showed a return to profit in the year to October 2021 with a £1.3 billion order book, a healthy pipeline of opportunities and high levels of secured revenues for the next financial year.
Today, the group is part-way through a five year, 2019-24 ”Constructing our Future” strategy under chief executive Paul Hamer and it is particularly seeking to grow its civil engineering and infrastructure portfolio.
Financials
To view the financials for Sir Robert McAlpine Ltd, visit Companies House and use Company ID 00566823
Sir Robert McAlpine rebounded well from Covid the year to end-October 2021. Its latest results show annual turnover was £937.2 million, up from £819.5m previously, whilst operating profit improved to £9.6 million, compared with a loss of £26.2 million previously. Exceptional charges fell to £0.2 million from £5.7 million in 2020, when Covid took a heavy toll. This left the group with a pre-tax profit of £9.2 million compared to a loss of £26.8 million previously. Meanwhile, cash rose slightly to £106.2 m in 2021, compared to £96.7m previously and the company has no debt other than finance leases. (The parent company Newarthill reported a pre-tax profit of £9.4 million compared to a loss of £8.7 million previously).
Construction
Key projects where the group is working include the Station Hill regeneration scheme in Reading, where McAlpine is the lead contractor. It is delivering the key phase which includes ‘ONE’ Station Hill (a 275,000 sq ft office building), a new public square and a link bridge to the town centre and due to be completed in early 2024.
Elsewhere in the regen sector, SRM recently topped-out the final phase of a £500m project next to East Croydon station, led by Menta. The scheme will involve almost 1,000 new and affordable homes in a series of seven buildings ranging from 12-25 storeys, alongside commercial and amenity space.
McAlpine has been expanding in the construction management sector and increasing its workload won through frameworks. It has been appointed to the PAGABO and the University of Glasgow frameworks.
On High Speed 2, McAlpine is part of the Align Joint Venture with Bouygues Travaux Publics and VolkerFitzpatrick on Contract C1. This includes a new viaduct across the Colne Valley and tunnels under the Chilterns and a budget of £965 million. In summer 2022, the Align JV started work on the construction of the line”s first and longest viaduct at a site near London, using a 700 tonne bridge-building machine.
McAlpine”s civils clients include Highways England (where McAlpine is a delivery integrated partner on its regional framework). The group is currently working on a major scheme to replace the A533 Expressway bridge alongside the M56 through an AmeySRM joint venture.
The group has a strong presence in the health sector.In spring 2022, IHP – an alliance between Sir Robert McAlpine and Vinci Construction UK – was appointed as main contractor to construct The National Rehabilitation Centre in Nottinghamshire, one of the government”s 40 new hospitals. The jv won the work under the P22 Department for Health and Social Care procurement framework.
Elsewhere in the sector, in autumn 2022, Sir Robert McAlpine started work on the construction of a 3,237 sq. m, three-storey building at Monkwearmouth Hospital in Sunderland for MDL, a jv between between Sir Robert McAlpine Capital Ventures and Argon Property Development Solutions.
In spring 2022, Sir Robert McAlpine was named as a supplier on the Crown Commercial Service’s (CCS) Construction Works and Associated Services 2 Framework Lot 5 for major public sector projects above £80m.
Meanwhile, the group is involved in the world’s first large-scale office scheme built using a standardised “kit of parts”, (P-DfMA) at The Forge, a 139,000 sq ft office scheme of two CAT A buildings in central London.
Elsewhere Newarthill”s small Caribbean construction business remains profitable.
Capital Ventures
Operating as a design & build contractor and investor, McAlpine has wide experience delivering schemes where it combines its risk management, financing, asset management and operating skills with its construction expertise. These have been through PFI, PPP, BSF and DBFO procurement routes.
The company is building new facilities at Springfield Hospital in south west London in a 50/50 partnership between Sir Robert McAlpine Capital Ventures and Kajima Partnerships. The scheme will involve over 800 new homes, a new 32-acre park, and two modern mental health facilities.
Newarthill’s portfolio of PPP investments revenues of £41.4 million in the year to October 2021 and its property business generated a turnover of £26.9 million.
Design
McAlpine provides clients with solutions in both permanent and temporary works and its expertise include architectural, civil, structural and geotechnical design. The firm often works on ‘constructability reviews’ and in value engineering, construction methodology and alternative designs. It also has wide experience in nuclear-related structural and civil design.
Project Development
McAlpine’s project development capability focuses on delivering a client’s vision to a budget. The company’s strengths in turning a proposal into a workable scheme have been highlighted at Hemel Hempstead’s Snow Centre, Arsenal FC’s Emirates Stadium and the M74 Completion project in Glasgow. The company also works widely in renewable energy and offshore project development.
Glenigan Data
Glenigan figures reflect Sir Robert McAlpine’s significance in the UK construction industry. Over the year to September 2022, they show that the company ranked as the 12th largest contractor having won 29 major contracts worth a total of £901.4 million (split between building £871.4 million and civils £30 million). Glenigan data also shows SRM ranked as the 4th largest contractor in the North East in 2022 (with six major contracts worth £136.4 million) and the ninth largest in the East Midlands (with four major contracts worth £77.3 million).
Conclusion: Strong brand and sector spread and a healthy work pipeline
Sir Robert McAlpine is aiming to effect a significant transformation across its business whilst retaining the fundamental ethos of a family culture which has served it well for the past 150 years. With a strong balance sheet and a healthy pipeline of work – particularly on health, HS2 and frameworks – the group appears well-placed to progress post-Covid even as the office building market slows. Assuming it can steer clear of problem contracts, its reputation as a design and build contractor and investor and its track record in complex civils projects should give it an edge in what are promising infrastructure markets, particularly road and rail. Meanwhile, the company”s privately-owned status frees it from some of the pressures which the City puts on its publicly-quoted rivals.
Winning work with Sir Robert McAlpine
Sir Robert McAlpine sets great store by the strong links it has with its supply chain who provide it with specialist knowledge across a range of businesses. The company maintains national and local lists of supply chain partners and a close iintegration of its supply chain is key to its approach to sustainability.
Key performance indicators used to evaluate suppliers include design, programme, safety, health & welfare, environment, quality, commercial and supervision.
The company’s ISO 9001 and 14001 certified company management systems highlight its commitment to quality. It also has a strong commitment to safety with a safety leadership programme to eliminate worker injury and near-miss incidents.
McAlpine was a founding partner in the new Supply Chain Sustainability School aimed at helping suppliers and subcontractors develop their sustainability knowledge and competence. The company was named Main Contractor of the Year by the Confederation of Construction Specialists.
Contacts:
The Head of Procurement and Supply Chain at Sir Robert McAlpine’s Hemel Hempstead HQ is
Simon Poulter
Tel: 01442 233444
Email: s.poulter@sir-robert-mcalpine.com
Declan O”Connor is Regional Procurement Manager.
Tel: 01442 233444
Email d.oconnor@sir-robert-mcalpine.com