Dutch engineering giant posts fall in revenue and profit for half-year
Bam has reported a slight increase in its income from UK activities, helping to mitigate an 11% fall in revenue overall in the first half of the year.
The Dutch engineering giant, in its half-year results today, reported a drop in turnover from €3.33bn to €2.97bn, due largely to its decision to divest firms in Germany and Belgium, which reduced income by €336m. The group’s overall pre-tax profit for the half-year fell from €108.9m to €72m.
The firm’s UK and Ireland divisions reported an 0.6% increase in turnover to £1.56bn, despite a 30% decline in revenue in Ireland due to “progress on large contracts.” It said the British pound exchange rate also had a €50 million negative effect on revenue.
Its construction revenue in the UK dipped by 2.7%, which it said was due to “inflation and supply chain challenges on some larger contracts”, but this was offset by civil engineering income increasing 6.4%.
The firm’s Netherlands division reported a revenue drop of 3% which it said was fuelled by political uncertainty and cost increases delaying project awards.
The group’s UK and Ireland division increased its EBITDA margin from 3.1% to 4%. However, its order book declined by 12% to €4.8 billion due in part to the cancellation of a €300 million highways framework contract by the government.
Bam’s overall pre-tax profit for the half year is €72m, down 33% year-on-year.
Bam has recently announced several project wins including additional works for HS2, two electricity grid converter stations, a three-year contract with the Tudor Grange Academies Trust to deliver integrated facilities management services and a new school building at Sunderland’s Farringdon Community Academy.
Meanwhile Bam’s civil engineering arm Bam Nuttall in accounts published on Tuesday reported an 84% drop in pre-tax profit in 2022 compared to the previous year, saying supply chain issues had affected projects.