One of Europe's leading construction companies, Royal BAM Group, announced today that its companies in the UK continue to perform resiliently in the current market, according to financial results posted for the year ending 31 December 2012. The combined turnover for BAM Construct UK, BAM Nuttall and BAM PPP, amounted to £1.7 billion with a combined pre-tax profit of £34.7 million and a margin of 2.0%. Their combined forward order book is valued at £2.7 billion.
Martin Rogers, member of the Executive Board of Royal BAM Group, said: ‘BAM’s UK companies have continued to perform well in the challenging economic and business environment that continues to persist. The profitability of the UK companies improved in 2012 primarily as a result of careful market positioning, project selectivity and improved risk management and project execution. Although their turnover in 2012 was lower than the previous year, combined revenue of £1.7 billion is evidence that the BAM brand is a significant force in the UK construction sector. The companies deliver major social and economic infrastructure projects that support growth and development of the UK economy. They work together collaboratively and have the financial stability and technical capability to offer national and regional customers an integrated range of construction and property services from concept and project initiation through to asset management.’ Highlights
Increased levels of profit and margin Continuing and new client relationships with leading organisations such as Network Rail, London Legacy Company, Oxford University, Rolls Royce, Argent and London Transport Pioneering BIM in construction, civil engineering and asset management Substantial reduction in carbon emissions against 2008 benchmark Vast majority of sites had no reportable accidents Charitable donations and community work valued at £846,000 Full value letting and sale of BAM’s speculative commercial development in Chiswick, London Successful acquisition of Sutton Group as part of strategy to expand facilities management
BAM Construct UK - financial summary
2012 £m 2011 £m
Turnover 917.2 945.9
Profit before tax 13.9 11.5
Operating margin 1.5% 1.2%
Graham Cash, Chief Executive of BAM Construct UK, said: ‘BAM Construct UK won an array of new projects in 2012 that demonstrates our range and versatility. We formed some significant new client relationships with customers who want high value construction and property services. We continue to innovate and to offer additional value to customers, for example, in the way we are developing building information modelling to help our customers manage their completed buildings more efficiently.’ BAM Nuttall - financial summary
2012 £m 2011 £m
Turnover 730.0 809.0
Profit before tax 18.1 14.8
Operating margin 2.5% 1.8%
BAM Nuttall’s Chief Executive, Steve Fox, said: ‘BAM Nuttall achieved a margin that exceeds most competitors and places us among the top performing businesses in the civil engineering market. Our order book remains strong, vindicating our selective approach to work winning. We continue to invest in developing our employees and supply chain and continue to work with other BAM companies and in joint ventures, when appropriate, to leverage our business into a superior and sustainable position.’ BAM PPP UK - financial summary
2012 £m 2011 £m
Turnover 55.8* 55.7
Profit before tax 2.7 3.1
Work in hand 312.5 438.6
*Of which £38.0 million is construction turnover. Robert Young, Managing Director of BAM PPP in the UK, said: ‘During 2012 we continued to work closely and flexibly with our existing clients, adapting and benchmarking our services and assisting them to manage change. The UK PPP market is currently providing some exciting opportunities for BAM in the education, transportation and health sectors and we hope that the emergence in 2013 of PF2 as the successor to PFI will act to stimulate the market more widely throughout the United Kingdom’.
