Bam UK revenue falls 16%

Revenue at Royal Bam's UK operations, Bam Nuttall and Bam Construct, fell 16% during the first half of 2010, compared to the same period a year ago.

Royal Bam's interim results, which do not separate out performances for its individual UK operation companies, show revenue fell to £727m (H1 2009: £767m), but profit increased to £16.9 from £13.1m.

However, the firm said its margin “was negatively affected by the high tendering costs involved in acquiring new contracts”.

It added: “The British market is characterised by continuing uncertainty about the consequences of the expected government spending cuts.”

Most of the revenue drop occurred at Bam Construct, though its order book has increased compared to year-end 2009.

In contrast, turnover at Bam Nuttall was “on a par with the first half of 2009”. The civils outfit delivered a “strong order book in a difficult market” where “results were under pressure in the first six months of 2010”.

Royal Bam said: “This market is marked by intense competition, especially because of the tremendous uncertainty about the consequences of government spending cuts. Nevertheless, the amount of work in the order book in the United Kingdom increased significantly in the first six months of the year and BAM Nuttall is in a good position.”

Overall, the group's order book climbed by 12% in the first six months of 2010 to £10.2bn, most of the increase achieved in the United Kingdom and Belgium.

Group revenue fell to £2.82bn from £3.32bn, with pre tax profit rising to £54.4m from £44.1m, compared to the first half of 2009.

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