BAM shrugs off Brexit fear as UK enjoys strong profits

Aaron Morby 8 years ago
Share

The UK operations of Dutch construction group BAM bounced back in the first six months of the year after a strong performance by BAM Nuttall.

Reporting a good first half performance in the UK, Rob van Wingerden, CEO of Royal BAM Group, said: “Since the Brexit vote, the only effect on BAM has been the translation of the weaker pound.”

He said that none of BAM’s three operating businesses, which include civils, building and PFI investments, had seen any cancellation of orders so far, with new contracts continuing to stream in.

Van Wingerden added that BAM had undertaken a thorough assessment of the implications of Brexit, and saw no material effect in the short term.

“Our UK order book is solid and we will maintain our tender discipline. We are monitoring new order intake closely and will adjust our operations if required,” he added.

The UK is BAM’s second largest market after the Netherlands accounting for nearly a third of group sales.

In a return to normal trading, UK profits more than quadrupled to nearly £16m in the first six months of 2016 as revenue slipped 3% to £916m.

The fall in the pound reduced the reported revenue from BAM Construction and BAM Nuttall by around £55m.

As a result of the improved trading performance UK group margins were restored to 1.7% compared with just 0.3% the year before.

Much of the profit growth was driven by BAM Nuttall and PPP activities after BAM Construction suffered small losses on closing a few projects.

The combined UK order book stands at £2.3bn, with virtually all forecast revenue for this year secured.

 

Latest news

Wates wins former Daily Mail printworks transformation

British Land advances major cultural venue at London’s Canada Water
3 hours ago

Mace poaches Ramboll chief to be Head of Engineering

Martin Feakes will develop civil and structural engineering offer at Mace
3 hours ago

Subcontractors form alliance for major civils jobs

Trio of specialists join forces to collaborate and offer Tier 1 contractors a turnkey solution
7 hours ago

Fear of supply chain failures boosting collaboration

Procurement survey also reveals project bank account use is rising
6 hours ago

Wates sets up business to target 160,000 mouldy social homes

Healthy Homes service will be offered to social landlords across England
7 hours ago

Higgins wins £75m Peabody Passive House job

Latest phase of Deptford Landings to start construction
7 hours ago

Contractors and unions agree Sizewell C working deal

New deal offers improved sick pay and parental leave over Hinkley Point deal
18 hours ago

Competition chiefs win legal fight for more construction raids

High Court rules CMA officials can raid a domestic property as part of investigation
1 day ago

More Osborne companies file administration notices

Three more divisions lodge notices with court
1 day ago

McLaren wins multi-storey urban logistics contract

South London win with British Land is pioneering urban logistics hub
1 day ago

Big social housing schemes at risk over funding uncertainty

Housing associations warn uncertainty over public funding beyond 2026 is curbing new schemes
1 day ago

Kier wins Worcestershire town centre renewal

Firm secures Bromsgrove commercial and cultural hub project
1 day ago

BAM signs Kent school contract at £42m

Sevenoaks school rebuild signed off at £8m more than first estimates
1 day ago

RG Group signs £121m Newcastle rental homes job

Developer Olympian Homes advances 519 flats plan at Pottery Lane site
4 days ago

Geoffrey Osborne files administration notice

Contractor in talks to save parts of the business
4 days ago

Winners named for £260m Manchester Uni framework

B&K, Henry Bros, Graham, Robertson and Vinci among new line-up
4 days ago

Shed specialist Benniman rides out market lull

Worcestershire warehouse builder says industrial and logistics work is picking up again
4 days ago

Another contractor cleared after high profile immigration raid

Adana Construction employees were working legally on site swooped on by Home Office
4 days ago

McAleer & Rushe wants to meet new London suppliers

Contractor holding Meet the Buyer event in London: Register now
4 days ago

McAlpine signs £500m Broadgate dual towers deal

Work to start on iconic 36-storey and 21-storey towers
5 days ago

Worker rescued from collapsed four metre deep trench

Fire crews take six hours to save trapped builder near Blackwall Tunnel
5 days ago

Gove puts another major building scheme on hold

Secretary of State starts another planning fight after M&S defeat
6 days ago

Greenwich University tenders £300m framework

Up to five firms will carry out upgrade and newbuild work at three campuses
5 days ago

Work starts on Manchester 26-storey Obsidian tower

Contractor Domis starts Salboy's 10th Manchester scheme in seven years
5 days ago

Race for £1.3bn West Midlands social homes framework

The Community Housing Group reboots tender race for new build housing
5 days ago

Delancey submits £400m King’s Cross lab plans

200,000 sq ft lab/office project will be built above railway and tube tunnels just 4.5m below
6 days ago

Winners revealed for £150m fire safety framework

New deal will help organisations comply with the Building Safety Act
5 days ago

Sellar plans £500m City tower next to Walkie-Talkie

Consultation starts on London 60 Gracechurch Street tower
6 days ago

Severfield ends year on high with record order book

Orders top £500m with strong future pipeline of opportunities ahead
6 days ago

Second senior director exits National Highways

Commercial director Malcolm Dare set to move on to new role
6 days ago

Contractor services