BAM UK profits slide in first half of 2019

Aaron Morby 5 months ago
Share

BAM’s UK operations suffered from a slow start to the year with profits and revenue down in the first half.

Royal BAM chief executive Rob van Wingerden says BAM Nuttall is expected to do better after a slow start to the year

The slowdown in building and property activity and more challenging market conditions saw profit margins at BAM’s combined UK building, civil engineering and property activities squeezed to 1.8% in the first half of this year, down from 2.8% previously.

Profit fell 39% to £14.4m on revenue down 3% to £807m.

In half-year results, the Dutch group, said in the UK, BAM Nuttall had a slow start to the year but a recovery was foreseen for the remainder of 2019.

BAM Construction was described as making a solid contribution to the year.

Despite the fallback, BAM’s UK operations made the highest regional profit contribution, even surpassing the firm’s home Dutch market.

Overall Royal BAM Group, booked a €38m loss in the first half, down from €58m pre-tax profit previously on revenue up 7% to €3.45bn.

Rob van Wingerden, CEO of Royal BAM Group: ‘We regret that our results for the first half of 2019 were negatively impacted by extra costs on projects in Germany and at International.”

“As part of our ongoing portfolio review, we have decided to exit our activities in offshore wind foundations.

“In addition, in line with our continuous effort to lower the company risk profile, we transferred a part of our UK pension obligations to a third party on a cash neutral basis.”

He said that planned actions ahead would enable BAM to meet its strategic target of a pre-tax adjusted margin of 2-4% in 2020.

Latest news

HS2 review slams project team as costs could hit £106bn

Oakervee review to give "lukewarm" backing to project
46 mins ago

Demolition winner for vast Elizabeth House job

Fierce competition for demolition package to pave way for new 31-storey tower at Waterloo
2 hours ago

Anglo Amercian commits to saving £2.5bn potash mine project

Mining giant aims to get Yorkshire construction project back on track
49 mins ago

£150m Manchester build to rent scheme approved

AECOM construction arm Tishman will deliver 23 and 29 storey Portugal Street East scheme
2 hours ago

T+T secures PM role on Bradford Odeon job

Restoration of former 1930 Odeon cinema to be completed late next year
23 mins ago

Robo cone layers to make life safer on road jobs

Automatic cone laying machines could be on site by end of the year
3 days ago

NAO raises alarm over cost of finishing Carillion hospitals

Spending watchdog warns a significant risk of £2bn cost of both hospitals rising further
3 days ago

Green light for Birmingham’s tallest tower

£150m Broad Street skyscraper will rise to 61 floors
3 days ago

Plan for £33m cross laminate timber office block

Developer Southern Grove plans 6 storey office block in London's Shoreditch area
3 days ago

GMI to build 14-storey Leeds hotel

Scheme will occupy last remaining plot on Sovereign Square site
3 days ago

Burglar caught after ransacking construction training centre

Rampage and robbery disrupts Sunderland training hub
3 days ago

Alligator park plan for £230m mixed use London site

Developer plans to turn iconic gasholder into reptile house on Old Kent Road
4 days ago

Domis set for £300m landmark Manchester Viadux

Developers Ask and Salboy team-up for mixed-use scheme near Deansgate
4 days ago

Winners named for £3bn offsite schools framework

B&K, Caledonian, Elliott, Laing O'Rourke and Wates come top of class
4 days ago

£30bn NHS construction frameworks shake-up starts

General healthcare and son of ProCure22 framework contests to start
4 days ago

Man extradited from Albania and charged with site murder

Albanian national appears in UK court after year-long extradition proceedings
5 days ago

Stepnell West Midlands boss leaves business

John Rawlinson departs after overseeing shift from civils to building
4 days ago

Farrans brings in two civils directors

Jonathan Kerr joins from Graham and Jim Steele was former Morrison MD
4 days ago

Richard Desmond wins planning for £1bn Westferry Printworks

Housing secretary overrules planning inspector to grant planning for 1,500 flats
5 days ago

Sisk wins UK’s tallest Premier Inn job

Foundation work gets underway on Canary Wharf site in London Docklands
5 days ago

Worker killed as excavator falls through concrete slab

McGee fined £500,000 following death on demolition site
5 days ago

Bouygues to start £115m Canterbury Riverside scheme

Work to start shortly on mixed use leisure and rental accommodation project
5 days ago

Green light for first homes in £1bn Purfleet regen scheme

Work to start on first 61 homes in Essex town centre regeneration
5 days ago

Balfour crowned 2019 contracts league champion

Multiplex and Bowmer & Kirkland join Top 10 firms for first time
5 days ago

Contracts manager jailed after roofer falls to his death

Police find risk assessment documents with forged signatures during investigation
5 days ago

Winners named for £2bn Hyde new-build housing deal

Eleven selected for £25m-plus projects among 41 winners
5 days ago

Worker killed and another injured on Birmingham Uni site

Men fall from a scissor lift at Balfour Beatty site
5 days ago

Firm set up by ex-Bardsley QS throws lifeline to 12 former staff

Goodwin Construction hires axed Bardsley staff as revenue set to hit £70m
6 days ago

Laing opens picture archive on post war construction

Picture vault reveals the industry's journey from flat caps to hard hats
6 days ago

VolkerFitzpatrick wins £40m Brent Cross West Station

Work to start on station in May, which will help to unlock £4.5bn
5 days ago

Contractor services