UK construction leads recovery at BAM Group

Aaron Morby 3 months ago
Share

BAM’s UK construction and property business has bounced back into the black and become the most profitable part of the international Royal BAM Group.

Combined UK operations returned a £20m profit last year after suffering a £2.6m loss the year before, due to BAM Nuttall suffering a heavy hit on its Liverpool 2 container port contract.

Financial results released this morning for 2015 reveal that UK turnover grew 10% over the year to £1.79bn as the firm benefited from the upturn in the market.

The turnaround makes the UK the most profitable part of the BAM group for the first time and sees the combined Irish and UK operations turning over £2.1bn, more than the Dutch home market.

Overall group pre-tax profit rose 42% to €88.2m on stable sales of €7.4bn as the Back to Shape programme launched back in October 2014 restored group performance, meeting key targets for cost reduction, projects in control, and divestments.

Rob van Wingerden, CEO of Royal BAM Group: ‘I am pleased with the major advances we made in 2015 to successfully implement the Back in Shape programme.

“With our 21,500 people working together, we delivered on demanding targets. Our results for the year show we are turning around our performance, and there is more potential to be unlocked.”

He added: “Our updated strategy for 2016-2020 – ‘Building the present, creating the future’ – will further improve the performance of our current project and business portfolio, and will position us for future opportunities.

“In a fragile macro-economic environment, our objective is to improve profitability and capital efficiency by ‘doing things better’.”

He added: “This means a more disciplined focus on market segments and projects where we can use either scale or expertise as critical success factor. Secondly, we will shape our business portfolio towards ‘doing better things’ by rationalising our propositions and developing new solutions for customers.

“Thirdly, we will invest in digitalisation to be an industry leader in how we build and what we build – ‘doing new things’. Our target is to reach a double digit return on capital employed by 2020.”

 

Latest news

Sir Robert McAlpine racks up £52m loss

Losses prompt restructuring with construction set to return to profit this year
22 hours ago

Plans go in for £185m Manchester towers

Twin resi towers and office block planned next to Victoria Station
1 day ago

Baldwins facing legal action over Blackwall Tunnel chaos

Transport for London tries to reclaim cost of resurfacing road following leak from mobile crane
1 day ago

Green light for £400m Kingston town centre revamp

Construction to start on Eden Walk scheme in early 2017.
1 day ago

HGV drivers warned after road worker crushed by runaway vehicle

20-year-old crushed to death on A21 repair site after materials delivery goes horribly wrong
2 days ago

Contest starts for £15m Tameside Interchange

Transport for Greater Manchester expects to start work at the end of this year
1 day ago

Bouygues Development rebrands as Linkcity

Renamed UK development business starts with a £1.3bn portfolio of schemes
1 day ago

Kier wins £8m Gloucester bus station

Council hopes bus station will lead £60m development of the King's Quarter
1 day ago

Barratt & Segro confirmed for £3.5bn Meridian Water site

Massive new housing scheme will create 10,000 construction jobs
2 days ago

Kier starts £19m home for last Concorde

New Filton Airfield museum will tell the story of Bristol’s aerospace industry from 1910
2 days ago

Plans unveiled for London Elephant & Castle town centre

Ambitious high-rise scheme to replace famous pink shopping centre and London College of Communication
2 days ago

Henry Boot dismisses talk of construction slowdown

More doubts cast over Government stats as business booming at construction division
2 days ago

Balfour Beatty bags £130m M20 lorry park job

3,600-space lorry park to ease congestion from queueing lorries when cross-Channel transport is disrupted.
2 days ago

BAM wins £41m Birmingham City Uni project

Work starts next month on the City South Campus in Edgbaston
2 days ago

Portakabin bags £8.2m worth of school rebuild jobs

Off-site techniques cut school build times in half
2 days ago

BAM Mott jv wins Devon and Yorkshire flood schemes

Work will start on the £32m next phase of the Exeter flood relief scheme in June
2 days ago

WSP swoops to buy rival consultant Sweett

£24m deal sees WSP continue on the acquisition trail
3 days ago

Swansea Tidal Lagoon developer dumps Chinese contractor

Swansea Tidal Lagoon developer to retender £300m sea wall contract
4 days ago

Cleveland Bridge UK returns to profit after four years of losses

New management team turns steelwork contractor around with £2.5m profit
3 days ago

Leaking mobile crane closes London Blackwall Tunnel

Traffic chaos across South London as contractors battle to resurface damaged road
4 days ago

GPE gears up for two more London starts despite Brexit fear

Gt Portland Estates warns over ‘unhelpful’ EU stalemate
3 days ago

Sixteen firms win national £1.5bn RE:FIT framework

National retrofitting scheme to lower public sector energy bills
3 days ago

J Murphy joins trade body Build UK

Abestos removal firms also sign up to newly-former contractors' association
3 days ago

Forrest to build £12.6m Manchester resi scheme

Construction to start this month on twelve-storey scheme
3 days ago

Didcot recovery operation hit by further delays

Bodies of disaster victims still not returned to their families after three months
4 days ago

Brexit fears send site wages soaring to £1,000 a week

Bricklayers now earning £25 an hour as skills shortages set to intensify if UK votes to leave Europe
4 days ago

Small companies being left behind by “BIM divide”

Smaller firms missing out on the benefits of computer modelling warns Morgan Sindall
4 days ago

Local contractors urged to chase £6bn schools deal

SME leaders encourage member firms to go for places on massive education framework
4 days ago

Renew hits acquisition trail as profits soar

Engineering services specialist delivers record results in first six months
4 days ago

Green light for £2.6bn Scottish windfarm

Construction to start this year on huge infrastructure investment
5 days ago

Contractor services