McAlpine To Break Up Its Core Businesses

Alfred McAlpine PLC announced plans yesterday to break up its businesses into two separate listed companies, effectively de-merging support services from construction activities.

Presenting half-year results to end June, the group also said it will sell its PFI concessions and slate business, before completing the de-merger of its business services and infrastructure services/project services businesses in spring 2008.

McAlpine's posted a 27 pct rise in underlying pretax profit to £12.7 million from a restated £10 million last year, ahead of expectations. Revenues increased to £615.3 million from £552.5 million a year ago.

Talking at a press conference Ian Grice , chief executive, said: "'In the coming months, we will be undertaking the detailed work needed to implement the planned demerger. We will also be progressing the sale of our slate business and our PFI concessions.

"Longer term, we are confident that this strategy for the group will enable both companies to flourish and grow and is in the best interests of shareholders, customers and employees."