BAM increased pre-tax profit in its combined UK operations by nearly 40% in the first half of 2018, new accounting figures have revealed.
Results from Dutch parent Royal BAM Group showed that its UK operations generated £820.2m in revenue for the period, down from £831.9m the year before.
There was a pre-tax profit for the UK divisions, which include BAM Construct UK and civils business BAM Nuttall, of £23.1m, an increase of 37.5% on the £16.8m it made in the same period a year before.
The results meant that BAM’s UK profit margin climbed from 2% to 2.8%.
Royal BAM said its UK order book grew, supported by former Carillion projects for existing clients and the Atlantic Square office development in Glasgow.
It added that non-residential construction and civil engineering markets remained stable but that uncertainty regarding Brexit remained unchanged.
At group level, Royal BAM made £2.88bn in revenue, with adjusted pre-tax profit of £52.1m.
Royal Bam Group chief executive Rob van Wingerden said: "Half-way through our five-year strategic period we are not yet where we want to be, although we have made good progress in many areas. As we need to further improve our performance and predictability, we will be even more selective in tendering for large projects.
"We are discussing with our public sector clients on ways to improve the risk and reward balance and contract conditions. We are also revitalising our working capital programme. Overall, we are confident that more rigorous strategy execution will enable us to deliver on our 2020 targets supported by our digital and sustainability agenda."
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