Its profits were up last year, while turnover remained consistent but the company has plans to move into new areas to create funds it needs for investment and growth.
BAM Construct UK chief executive James Wimpenny said: “We cannot earn enough from construction alone to provide the investment we need in our people and the technology they need for the future. We have therefore embarked on feasibility studies for potential work streams that would generate higher levels of profit to enable growth. There will be no sudden moves. Entry to new markets will be carefully planned with assistance from experts both inside and outside the group.”
The company has seven operating companies in the construction sector, plus separate businesses for plant hire, services engineering, facilities management, property development and design.
It recorded turnover of £949.8m - down slightly by 0.3% on 2017 - with profit before tax and exceptional items of £27m, giving a margin of 2.8% compared to 2017’s figure of 1.5%. The company reported an order book of £1.76bn and £83m in cash reserves.
Wimpenny said: “Our increased profitability reflects our business reducing risk by selective tendering and working smarter.” He added that the company’s consistency benefits both itself and its clients in a sector which has experienced recent instability.
“We are assisted by having a good balance of work between the private sector (58%) and public sectors (42%) and 65% of our work is repeat business, as clients that we have worked with before re-engage us. That is something I believe shows that our collaborative culture is one that our clients appreciate adds value to their projects. I am also pleased with progress at our growing FM business.”
The company has 2,549 employees. It completed 33 construction schemes in 2018 and secured 39 more.