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

Mayor of London pulls plug on Garden Bridge

Sadiq Khan withdraws backing amid fears of funding gap and rising construction costs
12 hours ago

Specialist sites to get £15bn funding boost

Building boom to continue in sectors like student accommodation and PRS
15 hours ago

Manchester’s Harbur Construction goes under

More than 20 jobs axed at social housing specialist
1 day ago

Hill on track for £850m turnover target

Rapid growth ranks south firm as country's third largest private house builder
14 hours ago

Scape starts race for £1.4bn Midlands framework

Procurement specialist aims to pick firms for 10 lots in Midlands and East of England
14 hours ago

Reading FC’s £500m Royal Elm Park scheme approved

Work to start early next year on convention centre and housing next to club’s Madejski Stadium
1 day ago

Construction firms: Show staff and suppliers you care

Entry deadline approaching for a chance to be recognised among the best in the business at the Enquirer awards
15 hours ago

Betting Spy: Chelsea title tip paying off

Nearly time to collect on our pre-season punt while Stoke, Spurs and Palace can land a treble
24 hours ago

Taylor Wimpey chief takes reins at Countryside house building

Countryside unveils leadership shake-up at house building and partnerships operations
2 days ago

New home registrations soar to 10-year high

NHBC registrations jump 17% in first three months of 2017
1 day ago

AstraZeneca HQ project costs skyrocket

Cambridge HQ project running over two years late and to cost £170m more than expected
2 days ago

HSE inspector numbers fall by 25%

Spending cuts bite at HSE raising union concerns about lack of enforcement
2 days ago

Taylor Wimpey sets aside £130m to settle lease rows

Housebuilder acts to help homeowners hit by ground rents which double every ten years
2 days ago

Styles & Wood targets schools and Government hub refit

Fit-out specialist targets public sector refurb work as profit jumps 26%
2 days ago

Forrest lands twin towers resi deal in Manchester

Contractor lands significant deal as it shifts from traditional maintenance market
3 days ago

CSCS backs “try before you buy” apprentices

Skills body supports on-the -job training with funding for contractors
2 days ago

Heathrow plans offsite revolution for infrastructure construction

Four new logistics hubs to be dotted around country to pre-assemble components for £16bn airport expansion
2 days ago

Interserve and Kier walk away from £100m water deal

Contractors unable to agree a price after six months with Severn Trent Water
3 days ago

Irish duo scoops £85m Cumbria pipeline job

Farrans and Roadbridge joint venture to deliver Thirlmere water mains project
3 days ago

Civils firms win £60m Welsh roads framework

Alun Griffiths, Dawnus, Jones Bros and JN Bentley snare Welsh roads spend
3 days ago

Grosvenor eyes mid-market housing as London chills

Plans for 1,500 homes to be submitted this year for five hectare Bermondsey site
3 days ago

CBI turns to “future leaders” to reform construction

Think tank set-up of rising stars under 35 to generate new ideas
3 days ago

Laing O’Rourke to get new Chairman

Anglo American chief Sir John Parker to join later this year
4 days ago

Talks start on independent appeals against FFI charges

Contractors to get fair hearings over £124-an-hour safety visit charges
3 days ago

Former Liverpool Chinatown contractor goes under

Bilt Group in creditors' voluntary liquidation
4 days ago

Staircase contractor fined £185k after death at O’Rourke site

CMF Ltd fined after worker crushed by falling concrete staircase
4 days ago

British Land submits latest Broadgate revamp plan

Developer to boost shopping space at 135 Broadgate bank building
4 days ago

Newly merged housing group to build 1,200 homes a year

Vivid plans to double new build housing output in Hampshire and Surrey
4 days ago

Willmott Dixon wins £24m Harwell testing lab

Builder returns to Harwell after completing project two years ago
4 days ago

Morgan Sindall wins £30m Soton student digs

Select Property Group has nine schemes in development around the country
4 days ago

Contractor services