The combined turnover for BAM Construct UK, BAM Nuttall and BAM PPP for the year ending 31 December 2010 was £1.79bn with a combined pre-tax profit of £36.7m.
Executive board member Martin Rogers said: “The turnover result positions Royal BAM Group’s UK operations in the top tier of the UK market. BAM Construct UK, BAM Nuttall and BAM PPP report a healthy order book position with a figure of £2.76bn at the year ending 31 December 2010. The companies are performing well in the face of difficult market conditions.”
BAM Construct UK
Construction turnover at BAM Construct UK was down less than 1% to £1037.2m, from £1,133.6m in 2009. Profit before tax and before property writedowns slipped from 20009’s £29.9m to £24.6m, giving a margin of 2.37%, down from 2009’s 2.63%. BAM Construct UK made a cost provision in 2010 of £7.5 million (2009 £10.3 million) against the carrying value of its current property developments in the UK.
BAM Construct UK Graham Cash chief executive said: “The economic cycle for major contractors means we enter the worst of the recession comparatively late, and trading conditions for the next two or three years will therefore be extremely challenging. Under these circumstances, our results are very strong. We have an enviable overall liquidity position of £271m, and nearly £1.8bn work in hand.
“Every one of BAM’s seven regional construction divisions was profitable with turnovers of £100m or more. BAM’s integrated business model also includes BAM Design, BAM Services Engineering and BAM FM (Facilities Management) all of which also made profits.”
Mr Cash added:‘Public spending cuts have affected our business already and our supply chain. The early signs of recovery in the property and commercial markets promise more in the southeast than in the north of England and Scotland, where trading conditions are the most difficult.”
BAM Nuttall
BAM Nuttall, the civil engineering arm, saw turnover rise nearly 8% to £694.8m, up from 2009’s £543.7m, but pre-tax profit slid 35% from £24.1m in 2009 to £15.7m. Operating margin decreased from 3.7% to 2.2%.
BAM Nuttall chief executive Steve Fox said: “Despite the challenging market conditions, arising from the recession and the substantial spending cuts imposed by the new government, BAM Nuttall has had another very successful year. The financial results reinforce our position as one of the UK’s leading civil engineering businesses. Turnover reached a new record of £694.8m. Pre-tax profit at £15.7m is down on 2009 levels but exceeds the forecast at the start of 2010 and still represents an industry leading percentage result. The forward order book also stands at a new record level of £967m. This reflects the significant contracts that were secured in 2010 including Victoria Station Upgrade, Managed Motorways, Crossrail Station Caverns and Western Running Tunnels, Luton Dunstable Guided Busway and Northumbria Water Framework. Our focus is on pursuing work with secure funding and adopting selective bidding practices, including continuing to work with our carefully selected partners.”
Mr Fox added: “2010 proved to be our best ever year in health and safety performance with the total number of lost time incidents down by 40% and those resulting in more serious injuries showing a 25% reduction, both on 2009 figures. The use of Observation Cards has increased significantly, indicating a further improvement in our workforce engagement in accident prevention. We were awarded a number of important Construction Industry Safety Awards including RoSPA, Construction News and Network Rail.
“Also very encouraging is our performance in reducing waste sent to landfill. Our efforts in 2010 mean that we have now seen a 70% drop since 2008 and this puts BAM Nuttall ahead of the 2012 WRAP 50% target.”
BAM PPP UK
BAM PPP reported turnover of £60.8m in the UK in 2010 and pre-tax profit of £3.9m. Value of work in hand at year end was £840m.
BAM PPP director Robert Young said: “Success was achieved on two Building Schools for the Future bids with BAM Construct UK. Work began on the Borders Railway bid with BAM Nuttall and BAM Rail; this will continue throughout 2011. Beyond these projects BAM PPP is positioning itself with its sister companies and other partners for a number of major infrastructure and accommodation PPP projects scheduled to commence in 2011. These projects have a combined capital value in excess of £1 billion.”
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