BAM's UK profits surge by 80%
A strong performance in the civil engineering sector has helped drive BAM's UK profits up by 80% in 2018, according to the company's latest financial results.
The UK arm of the Dutch firm, which includes BAM Construct and civils business BAM Nuttall, recorded a 2.8% increase in revenue in 2018 to €1.9bn (£1.65bn).
Adjusted UK profit before tax in 2018 was €58.9m (£51.1m), up 80% on the €32.8m (£28.4m) the firm made the year before.
BAM hailed a strong performance in civil engineering in the UK and Ireland, offset by its performance in the Netherlands.
The group’s total revenue for the year was €7.2bn (£6.2bn), an increase of 10.3% on the year before. Adjusted profit before tax increased strongly to €153.2 (£132.8m), up from €24.9m (£21.6m) in 2017.
Rob van Wingerden, CEO of Royal BAM Group: “2018 has been a year of good progress for BAM. Most of our businesses performed well, which reflected the benefits of ongoing improvements in our tendering and project execution. Although the sea lock Ijmuiden adversely affected our results and cash flow, we made further steps in de-risking the project. Our overall cash flow for the year was positive and our financial position remained strong.
“Conditions in most of our markets are generally positive, although uncertainty over Brexit remains.
“For 2019, we expect the revenue to be around €7 billion and aim to further improve the adjusted result before tax margin within the strategic target range of 2 to 4%.”