UK construction leads recovery at BAM Group

Aaron Morby 8 months ago

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

GRAHAM lands £150m Barnet major works deal

Leisure centre and school sites kick-off five-year partnership
1 hour ago

Manchester 52-floor skyscraper approved

St John's Place tower at former Granada Studios site gets green light
8 hours ago

Lendlease renews site access deal with HRS

Latest monitoring technology to be used at all contractor's sites
1 hour ago

Michelmersh calls end to brick price rises

Increased competition sees prices remain flat
7 hours ago

Pensioner killed at poorly managed roadworks

Tarmac hit with £1.3m safety fine
8 hours ago

Cleveland Bridge recruits large buildings team

Steelwork contractor set sights on large building market
5 hours ago

Murphy signs contract for £25m Blackpool outfall

Work to start on UK's longest and largest diameter outfall in March
8 hours ago

Prater nets roofing deal at Wimbledon No. 1 Court

Contractor will start on cladding package in January
14 hours ago

Construction site gas leak causes chaos at King’s Cross

200 workers evacuated from North London site
23 hours ago

£28m Dudley rail centre gets green light

Very Light Rail innovation centre and test-bed track approved
21 hours ago

Wates confirms Paul Chandler as new construction boss

Former Skanska chief to take up the reins in January
1 day ago

Betting Spy: Contractors on a roll at awards night

Enquirer awards after party was a long night while favourites can land a 3/1 treble
16 hours ago

£20m road schemes backed for 3,300 south west homes

Quartet of road improvements will unlock 3,300 new homes
24 hours ago

Barratt boss arrested in contracts probe

London MD Alastair Baird suspended following major investigation
2 days ago

Laing O’Rourke to start St James Centre £1bn revamp

Demolition of old St James shopping centre in Edinburgh to take 18 months
2 days ago

Link Group names £280m Scottish new build partners

Keepmoat, Cruden, Graham and Esh secure places on central belt framewok
1 day ago

Dormant Scottish Tesco sites get £100m boost

London & Scottish Developments to start construction on ten sites
1 day ago

Civils firms slash carbon emissions in half over six years

Laing O'Rourke, Morgan Sindall and Carillion lead the low CO2 way in infrastructure
1 day ago

Plan unveiled for £48m resi tower in Liverpool

Latest 30-storey build-to-rent tower at Liverpool Waters
1 day ago

Clugston green light for £60m Sheffield IKEA

Project is the largest retail win in the region for Scunthorpe contractor
2 days ago

Travis Perkins to close over 30 branches

Builders' merchant in profit warning to the city
2 days ago

Mace tops September contracts league with London win

£450m One Crown Place project in Shoreditch lifts contractor
2 days ago

Costain tops best-paid Network Rail supplier rankings

Network Rail spending with Costain soars 75% to £377m
2 days ago

CH2M boss Roy Hill to lead HS2 construction

Consultant boss steps in while search continues to replace Simon Kirby
2 days ago

Search starts for construction’s best photographer

Enter your best pics now for Art of Building competition
2 days ago

Top Ten winners celebrate construction success

Industry enjoys top night out at inaugural Construction Enquirer awards
2 days ago

Bidding to start for £80m Nottingham shopping centre revamp

£80m Broadmarsh shopping centre expansion comes out to bid
2 days ago

Bouygues UK drops Thomas Vale brand

Dozen staff laid off as Midlands offices consolidated into new Birmingham base
3 days ago

Benniman bags first phase of £120m business park

Main construction to start this month on 90 acre Worcester site
3 days ago

Galliford Try confirmed for £68m Newcastle student village

Construction due due start shortly on Newcastle Uni student village
3 days ago