BAM UK profit rebounds as orders surge

Aaron Morby 3 years ago
Share

Dutch construction giant Royal BAM’s UK combined construction and civils operations’ profits more than doubled last year to £71m as the firm recovered from its legacy student project.

Revenue was also up 21% to £1.9bn driven by HS2 and major project wins by the construction arm.

Civil engineering arm BAM Nuttall delivered the strongest performance of the two UK businesses with revenue up a third to £1.1bn and EBITDA  jumping 75% to £34m. This lifted margin to 3.2% from 2.4% previously.

Strong growth at BAM Nuttall saw the performance in the UK exceed the Dutch Group Royal BAM’s home market performance in civil engineering for the first time.

BAM’s UK construction and property business also enjoyed a strong improvement last year, achieving a margin of 2.9% after a more dismal 2020 impacted by its problem University of Sheffield job where BAM was forced to tear down the concrete frame of its £65m Faculty of Social Sciences project.

Ruud Joosten, CEO of Royal BAM Group, said 2021 was helped by a stronger first half year, which included a positive claim settlement at the business.

The construction arm order book in the UK grew by over £400m to £1.4bn, including £100m due to the stronger pound, with large project wins in 2021 including the Co-op Live Arena in Manchester, and Space House and 11 Belgrave Road in London.

Joosten said: “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 government is encouraging modern industrialised construction with Design for Manufacture and Assembly techniques. The private market is a mixed picture, with lower demand in retail and some hesitation in offices, partly offset by logistics and pharmaceuticals.”

Across the group, he said the new plan to concentrate on core Dutch and UK markets was advancing well.

“We are one year into our three-year strategic plan to create a more predictable, profitable and sustainable company.

“We have made good progress with de-risking of the group.

“We divested several business units including BAM Swiss, BAM Deutschland and BAM Galère in Belgium, with combined annual revenues of approximately €600m. In addition, this week we announced the divestment of BAM Contractors in Belgium. We are in the final phase of the wind-down of BAM International.

“At the same time, we have increased our emphasis on modern and sustainable building methods and invested in industrialised and modular construction capacity. We implemented a new operating model from 1 January 2022, which will drive further operational excellence, knowledge sharing and development of life-cycle solutions.”

Latest news

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
20 hours ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
5 hours ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
21 hours ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
21 hours ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
21 hours ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
2 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
2 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
21 hours ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
2 days ago

Major Building Safety Regulator shake-up to end tower delays

HSE stripped of control and top fire chiefs brought in to fast-track stalled schemes
2 days ago

Hinkley trio sign Sizewell civils deal

Balfour,Bouygues and Laing O'Rourke form Civil Works Alliance for new power station
2 days ago

£3.9bn data centre plan for Ravenscraig steelworks

Green energy to power massive new steel to silicon AI campus
2 days ago

Breakthrough on HS2’s second longest tunnel

8.4 mile Northolt to Old Oak Common drive completes
2 days ago

Neilcott on fast-track to debt-free employee ownership

£22.5m loan nearly paid down after big profit year
2 days ago

TfL kicks off race for £700m Tube station upgrade

South Kensington and Elephant & Castle top the pipeline list
2 days ago

Corbyn Plant Hire fleet goes under the hammer

Kit to be sold off by sister firm to collapsed groundworks contractor
2 days ago

Government wields procurement stick on late payment

New rules would block slow payers from bidding on big public jobs
5 days ago

Hercules buys power line labour firm for £15.7m

Labour supply specialist snaps up Advantage NRG to tap booming electricity upgrade market
5 days ago

Universal bid to fast-track planning for theme park

Entertainment giant eyes 2026 start at Bedford site
5 days ago

Developer Breck to transform former Ibstock brick factory

Ravenhead works to become 300-home development
5 days ago

SP Energy Networks awards contracts worth £1.4bn

First round of awards under £5.4bn national electricity grid upgrade programme
6 days ago

Travelodge to convert Liverpool Street office building

Office-to-hotel conversion in City of London
5 days ago

Plans lodged for 1m sq ft City of London office

Barbican landmark building will reuse 40% of existing structure
6 days ago

PTSG acquires roofing specialist HD Sharman Group

Premier Technical Services Group expands building maintenance division
5 days ago

Balfour Beatty lands £833m carbon capture power plant job

Work to start later this year on Teesside carbon capture gas-fired power station
6 days ago

Svella agrees deal to save Cubby Construction

Solvent purchase set to save 214 jobs and protect supply chain
6 days ago

J Coffey holds line on margins despite £52m revenue slide

Pre-tax profit down 14% but firm eyes strong pipeline to bounce back
6 days ago

Consultants called up for £2.3bn NHS SBS panel reboot

Market asked for views ahead of next-gen procurement rollout
6 days ago

Hochtief launches new UK data centre division

German business model to be introduced for UK construction
7 days ago

Construction skills body launches with 100,000 worker target

Industry to work closer with Jobcentres to find new talent
6 days ago