Insider Media Limited

Engineering giant Alstom has made a year-end loss of more than £54m, according to its latest accounts. The Rugby-based company plunged firmly into the red after spending more than £26m on restructuring costs. In the 12-month period to 31 March 2011, Alstom acquired its Stafford-based subsidiary Alstom Grid, which also contributed losses to the company's year-end results.

Alstom, which is the UK arm of the France-headquartered Alstom Group, posted an improved turnover of £1.1bn, a slight increase on its £1bn result the year previously.

However, once the company's £26.4m restructuring costs had been taken into account, its losses stood at £54.8m. In its 2010 year-end results, the company posted profits of £58.2m.

Despite the deficit, Alstom said in a statement that "future prospects are encouraging" for the company.

Alstom completed the purchase of its grid subsidiary on 31 December 2010 for £234.1m.

Alstom said it had "encountered some difficulties" in regards to the execution of its power plant projects. After a tough 2010, the company said the projects "continued to be difficult during 2011 and further losses have been made of £114m".

Alstom received a capital contribution of £235m from its parent company within the period following a share issue to raise funds. The cash was put towards the acquisition of Alstom Grid, and the company said it allowed it to pay off the debt which rose as a result of the purchase.

The company said that going forward, investing in research and development would be a key priority. Alstom spent £32.7m on R&D over the year-long period, an increase of more than a third on its £20m investment in 2010.

Alstom revealed its financial results through its annual accounts, sent to Companies House.