BAM UK operations enjoy 40% revenue rebound

Aaron Morby 1 year ago
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BAM’s UK construction and civils operations both recorded a 40% rebound in revenue during the first half of this year.

The improved performance saw BAM construction and property return to £18.3m profit in the first half after a loss of £12m in the previous Covid-hit first half of 2020. The rebound was also supported by a claim settlement.

Confidence was also bolstered with BAM Construction’s largest-ever contract win at £253m for Manchester’s Co-op Live Arena.

BAM Nuttall also notched up a 40% revenue rise in the UK, driving overall Royal BAM civils up by 20%.

The civils arm remained bigger than the building business with first-half revenue of £539m, but profit was slightly lower than the building business at £16.4m.

BAM UK first half trading
Revenue change adj EDITDA change
BAM Construct £467m 40% £18.3m n/a
BAM Nuttall £539m 40% £16.4m 5%

Ruud Joosten, CEO of Royal BAM Group, said that the civils order book in the UK remained at a high level, allowing for continued selective tendering.

He added: “In the United Kingdom, the government has committed to significantly increase public investment over the next four years, resulting in a positive outlook for health, justice and education.

“The private market is a mixed picture, with lower demand in retail and some hesitation in offices, partly offset by logistics and pharmaceuticals.”

As a whole, the Royal Bam Group this morning reported a return to the black in the first half of this year with adjusted EBITDA of €157m compared with a €54m loss previously on revenue increased by 17% to €3.63bn and above the pre- Covid level of €3.45bn for the first half of 2019.

 

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