Construction revenue down 7% in Q1 2011
BAM’s construction revenue fell by 7% in the first quarter of 2011 compared to the same period in 2010. In their results statement however, the Royal BAM Group said the margin and contribution to the total sector remained good.
The statement added: “The UK order book remained healthy at the end of the first quarter, but acquisition of new contracts has become difficult as British government austerity measures have taken effect.
“This may be reflected in the results for 2011 as a whole, and in subsequent years.”
The company’s order book on the whole stood at €11.9bn at the end of the quarter compared with €12.1bn in the last quarter of 2010.
Nico de Vries, chairman of the executive board of Royal BAM , said: “BAM’s results for the first quarter were stable and in line with expectations, underpinned by successful execution on large projects. Results at our construction and civil engineering sectors were similar to last year, and the property sector made a small profit.
“Looking ahead, we maintain our expectation of a net profit level of €120m (£106m) for 2011, taking account of increased pressures on margins for new orders.
“I am also pleased to report today an innovative joint venture agreement between BAM, PPP and the leading Dutch fund manager, PGGM, which will help us accelerate our growth in this important market of public private partnerships.”