Contractor narrows losses as problem contracts are cleared
Bam said its UK construction business is expected to return to the black this year as the firm works it way through loss-making legacy jobs.
The firm narrowed pre-tax losses to £9m in 2024 from £31m which, in a note accompanying the accounts, the firm said was “driven by the closing of legacy projects”. It added: “2025 is expected to see the business return to a healthy profit.”
Revenue during the period was down 13% to £779m but its forward order book was up by 45% to £879m.
It said last year it had been hit by several supply chain failures and added: “Whilst controls exist to ensure supply chain resilience and limit the exposure to insolvency, projects were impacted by a limited number.”
But it said prospects for the current year were better and added: “The strengthened tender process alongside a process of working with the right clients, at the right price, delivering the right work, started to come to fruition.”
Its cash balance at the year-end was down 18% to £31m.
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Meanwhile, the firm’s parent Bam Construct & Ventures, which also includes its FM arm, said turnover last year was down 14% to £924m. The firm returned to the black with a pre-tax profit of £4m from an £11m loss last time. Its order book was up 15% to £1.5bn.
Year-end cash stood at £83m, down 4.5%, while the number of employees was down 12% to 1,800.
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