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Wed June 16 2021

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Profits up 46% for BAM Construct

20 May Despite the impact of Covid-19 dampening turnover, BAM Construct’s UK operations saw increased profits in 2020.

The board of BAM Construct UK (left to right): Doug Keillor, Andrea Singh (HR), Neil McGruer (finance) and (seated) CEO James Wimpenny
The board of BAM Construct UK (left to right): Doug Keillor, Andrea Singh (HR), Neil McGruer (finance) and (seated) CEO James Wimpenny

BAM Construct UK report and accounts for 2020 show that profit before tax increased 46% to £13.7m (2019: £9.4m).

Revenues from design, construction, facilities management and property development businesses reduced by 15% to £793.1m (2019: £930.5m) due to the impact of Covid.

The order book remained strong at £1,471.9m (2019: £1,402.9m). Of new work won in 2020 58% was for public sector clients and 42% was for private sector clients.

The year-end cash balance was £80.7m (2019: £85.8m) and the balance sheet shows net assets of £145.0m (2019: £135.7m).

BAM improved its payment times to its supply chain to an average of 36 days (from 39 days).

BAM Construct UK includes BAM Construction, BAM FM, BAM Properties and BAM Plant. It does not include BAM Nuttall, the UK-based civil engineering contractor; the Dutch parent company keeps the Nuttall accounts and management separate from BAM Construct UK.

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In 2020 BAM Construction showed a pre-tax profit of £8.4m (2019: loss £2.4m) on a revenue of £722.4m in 2020 (2019: £867.8m). Major construction awards in 2020 included a project to build new film studios in Elstree for Sky, Central House offices in London, Derby Cathedral Free School, and the Clydebank Health Centre.

BAM FM’s turnover grew 10% to £65.2m (2019: £58.9m). Pre-tax profit was £3.5m (2019: £3.6m). BAM FM won new business for Crawley Education Authority, London Borough of Hackney, North Ayrshire Council plus Hilton Hotels, Skechers and Premier Foods, among others.

BAM Properties delivered a pre-tax loss of £2.9m (2019: loss £1.1m) on a revenue of £12.1m in 2020 (2019: £1.5m). The loss for 2020 was driven by the impairment of an investment in Leeds, which was subsequently sold in the year.

BAM Construct UK chief executive James Wimpenny said: “The main impact of the pandemic was on our construction operations and demand was significantly reduced in the first half of 2020, with the second half returning to more normal levels of productivity.

“We entered 2021 as a strong business and have proven to be very resilient, supported by a healthy order book and balance sheet. We remained profitable and continued operating and winning high quality new business because of the resilience and loyalty of our people, our focus on strong client relationships, a commitment to selective tendering, and because we delivered safely, efficiently and sustainably.”

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