Dutch group points to strong performance in UK civils and property
Profit at Bam’s UK operations rose by nearly 80% last year, despite continuing uncertainty around Brexit.
Netherlands-based Royal Bam Group said construction activity across the UK had stabilised, while it had seen strong results in property and civil engineering.
Its UK business, which includes its Bam building arm and Bam Nuttall civils business, reported revenues of €1.9bn (£1.66bn), up 3%, with adjusted pre-tax profit coming in at €58.9m (£51.4m).
Bam has enjoyed a number of high-profile wins recently including working on part of Facebook’s new headquarters at King’s Cross while Nuttall landed a spot on a Network Rail framework covering its London North Eastern and East Midlands rail routes.
Bam said the issues around the Ijmuiden sea lock projects had hit its overall results and cash flow, although it had taken steps to de-risk the job.
Adjusted group revenue rose 10.3% to €7.2bn (£6.3bn) and pre-tax profit more than quadrupled to €153.2m (£133.4m), giving a pre-tax profit margin of 2.1%.
The group’s overall order book rose 9.5% to €12.7bn (£11bn).
Rob van Wingerden, Royal Bam’s chief executive, said conditions in most of the group’s markets were “generally positive” but warned: “Uncertainty over Brexit remains.”
Van Wingerden said the group expected revenue for 2019 “to be around €7bn” and it was aiming to improve its profit with a target margin range of between 2% and 4%.