UK construction leads recovery at BAM Group

Aaron Morby 1 year 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

London’s Camden Council to strip cladding from five towers

Tests reveal Chalcots Estate fitted with polyethylene core cladding
14 hours ago

First tests reveal combustible cladding on other towers

Up to 600 towers need to be checked
18 hours ago

Two killed in crane collapse on Crewe construction site

Tower crane comes down on Seddon site
1 day ago

Berkeley cleared to fast-track scheme for Grenfell survivors

Homes and Communities Agency strike deal to buy Kensington Row luxury apartment scheme
2 days ago

Buckingham Group targets £500m revenue in 2018

Profits soar as firm eyes swelling pipeline of stadium projects.
1 day ago

Five more Edinburgh schools found with building defects

Investigation reveals more schools in Edinburgh suffered wall-tie defects
21 hours ago

Galliford/Lagan jv wins £135m RAF Marham hangar

New hangar will house a dozen F-35B vertical take-off jets
1 day ago

CIOB sets up commission to probe control of build quality

Paul Nash to lead urgent review into behaviour that undermines quality in construction
2 days ago

Barratt names new finance boss

Barratt promotes Jessica White to top financial executive
21 hours ago

Opinion: Construction must say never again to another Grenfell

The industry must break with its lowest cost culture
2 days ago

Profits soar at Berkeley despite housing market uncertainty

Berkeley worried about Brexit impact on skills as half its site labour comes from EU
2 days ago

Hewden sell-off raises £120m but trade creditors get pennies

More than £41m was owed to plant hire giant's trade creditors
2 days ago

New Bovis Homes boss buys extra £2m shares

Greg Fitzgerald raises his shareholding to around £3.2m
2 days ago

Kier and Bouygues look for London subcontractors

Major meet the buyer event in the capital next week: Register now
3 days ago

Croydon council to retrofit 25 towers with sprinklers

Council to start £10m sprinkler programme in tallest housing blocks
2 days ago

Yorkshire builder’s MBO deal sowed seeds of own demise

George Hurst & Sons never recovered from an MBO a decade ago saddling the business with debt
2 days ago

Queensferry Crossing to open on August 30

End in sight for contractors who have battled against high winds for six years
3 days ago

Councils ordered to check rainscreening on all buildings

Government to fund fire rating tests on all aluminium composite material clad buildings
4 days ago

Morgan Sindall infrastructure boss to join Lagan

Nick Fletcher to return to Lagan as Chief Operating Officer
3 days ago

Architect makes loss as construction market peaks

Aukett Swanke struggling for commissions as market hits "bottom of the cycle"
3 days ago

Final concrete poured on Mersey Gateway

Bridge project on course to be completed this autumn
3 days ago

Willmott Dixon wins £20m medical school

University works swell to £320m with new Anglia Ruskin School of Medicine in Chelmsford
3 days ago

Worker trapped between roof and work platform

Contractor Pyeroy fined £130,000 for lack of MEWP training
3 days ago

Bristol Uni plan for £300m Temple Meads campus

Construction work is scheduled to get underway on 900,000 sq ft scheme in 2019
4 days ago

Morgan Sindall secures Midlands power network deal

Western Power Distribution two year contract extension worth £60m
3 days ago

Specialists named for £290m SW highways work

21 firms awarded specialist works on new South West England asset delivery model
4 days ago

Vital Energi wins Ardmore package at Ram Brewery

Specialists latest success with main contractor
3 days ago

Experts focus on rapid fire spread up exterior clad columns

Building columns clad in 'flammable' rainscreening allowed Grenfell fire to spread rapidly
4 days ago

Bechtel posts £2.3m UK operating loss

Project management specialist hit by problem contracts
4 days ago

Third of firms dropped from £1bn-plus London housing deal

Notting Hill Housing Trust names 23-strong line-up of favoured contractors
4 days ago

Contractor services