Despite the profit fall, BAM delivered a pre-tax margin of 2.7% – still one of the best among the top tier contractors.
BAM’s civils side performed well while building arm BAM Construction saw profits fall sharply despite booking a record year for turnover.
The Dutch contracting giant said it was very aware of the effect that a restraint in public expenditure would have on construction over the next few years.
“Our strategy is to remain focussed on maintaining a strong regional presence, supported by work from specific sectors. Rail,highways, waste and energy markets will remain our primary focus, “ said a company statement.
09 £m 08 £m
Turnover 1,133 1,059
Pre-tax* 29.9 52.3
Op margin 2.63% 4.94%
before property writedowns*
09 £m 08 £m
Turnover 643.7 650.0
Pre-tax 24.1 28.2
Op margin 3.7% 4.3%
Graham Cash, chief executive at BAM Construct, said: “Over the past year we have demonstrated the ability and flexibility to withstand the very difficult market conditions.
“No one expects 2011 to be an easy year. BAM Construct UK’s strategy will be to continue to enhance our expertise and delivery, to perform well on all our frameworks and to encourage our private sector clients back to the market.”
On the civils side, BAM Nuttall remains optimistic after a series of big contracts awards in January and February helped to secure work for 2011.
Steve Fox, chief executive of BAM Nuttall, said: “With public spending cuts on the horizon, BAM Nuttall continues to focus on projects and sectors where there is greater security of funding.”
Major schemes secured include the upgrade of Tottenham Court Road tube station in London, the Evergreen 3 rail improvement scheme, which will dramatically reduce journey times between London Marylebone and Birmingham and the refurbishment of the north bound bore of the Blackwall road tunnel in London.