BAM Construct UK has reported pre-tax profit of £19.3m (2016: £26.2m) on revenue of £957.5m (2016: £1,072.2m), producing a margin of 2%. Operating profit improved by 40% from 2016 before exceptional items.
BAM has no debt – its cash at the year-end was £82.3m (2016: £116.6m), and its order book was £1,624m (2016: £1,654m).
Chief executive James Wimpenny, who took up his position in January 2018, said: “BAM Construct UK has been consistently profitable for more than a decade. We operate in a high risk, low margin industry. We believe our stability and predictable performance is attractive to clients and our supply chain and is one of the reasons why much of our work is repeat business. “
BAM Construct UK is part of the Dutch Royal BAM Group. Its businesses include BAM Construction, BAM Properties, BAM Design, BAM Services Engineering, BAM Plant and BAM FM. However it does not include BAM Nuttall, the civil engineering contracting part of the group, which operates as a separate company.
BAM Construction, the largest subsidiary of BAM Construct UK, contributed revenue of £903.5m (2016: £987.6m) and made a pre-tax profit of £20.9m (2016: £5.3m). The revenue reduction was attributed to more selective bidding, in line with group strategy.
BAM Construction executive director Douglas Keillor says in his company’s strategic report that BAM Construction will seek to extend the scope of its building services engineering division “as securing effective M&E services is an expensive and high risk element in most major construction projects.”
Mr Keillor adds: “BAM Design and BAM Plant, which are divisions of BAM Construction, also have an important role to play in pioneering the application of emerging technologies to construction and design processes, including the use of 3D printing, robotics and prefabrication.”