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Construction revenue in the UK fell by 7% in Q1 2011 compared to the same period in 2010. The margin and contribution to the total sector result were both good, said BAM. “The UK order book remained healthy at the end of the first quarter, but acquisition of new contracts has become difficult as British government austerity measures have taken effect.” This may be reflected in the results for 2011 as a whole, and in subsequent years, it said.
There was a slow start to the year in Belgium - but good prospects - and higher revenue in the Netherlands and Germany.
“BAM’s results for the first quarter were stable and in line with expectations, underpinned by successful execution on large projects,” said chairman of the executive board of Royal BAM Group Nico de Vries. “Results at our Construction and Civil Engineering sectors were similar to last year, and the Property sector made a small profit. Looking ahead, we maintain our expectation of a net profit level of €120m [£106m] for 2011, taking account of increased pressures on margins for new orders. I am also pleased to report today an innovative joint venture agreement between BAM PPP and the leading Dutch fund manager PGGM which will help us accelerate our growth in this important market of public private partnerships.”
The company’s order book stood at €11.9bn at end of Q1 2011, compared with €12.1bn at the end of 2010.
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