Contractor reveals £155m of new infrastructure contracts as it predicts 2006 profit will be at high end of expectations

Alfred McAlpine said today that profit in 2006 will be higher end of expectations as it revealed £155m on new infrastructure contracts.

In a statement to the London Stock Exchange, the group said growth was driven by the extension of established contracts and new wins in all its markets.

It added that it was starting 2007 with an increased order book.

Last year, it’s business services unit won a number of new clients including providing facilities management services across Her Majesty's Revenue & Customs' estate for Mapeley.

The company said the infrastructure services division was starting to benefit from the restructuring in 2005.

Separately, Alfred McAlpine announced it had won four new infrastructure services contracts worth in excess of £155m.

It has secured a £40m contract with EDF Energy Networks as part of the capital programme supporting its electricity network in East of England.

Under the contract, which will run for four years, Alfred McAlpine will provide major sub-station design and build services.

It has also been awarded a one year extension, worth £25m, to its existing highways maintenance contract with Suffolk County Council.

In addition, it has been appointed as the preferred bidder for a water industry mains replacement contract and a new framework contract in the electricity sector covering the upgrade of underground cables worth £90m.

Finally, the Welsh Assembly has confirmed that the Early Contractor Involvement scheme covering the widening of junctions 29-32 of the M4 in South Wales can move into construction phase following two years of scheme valuation and design. The contract is worth over £65m.

Ian Grice, group chief executive of Alfred McAlpine, said: “We have made significant progress during the year across all our businesses and have continued to invest for controlled, sustainable growth.

“Our business is positioned in markets which offer significant long-term growth pportunities, allowing us to deliver high quality, visible earnings streams that underpin our growth targets.

“We enter 2007 with a record order book and a healthy pipeline of new opportunities and are well placed to continue the momentum of the last 12 months.”