London 29 April 2010
Royal BAM Group companies in the UK are reporting solid results for the year ending 31 December 2009. The combined turnover for BAM Construct UK, BAM Nuttall and BAM PPP amounts to just over £1.8 billion with a combined pre-tax profit of £49 million. This represents a margin of 2.7% – one of the best in the sector.
Martin Rogers, member of the Executive Board of Royal BAM Group, says: ‘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 £2.74 billion at the year ending 31 December 2009. ‘BAM PPP, BAM Nuttall and BAM Construct UK have worked throughout 2009 to strengthen the BAM brand in the UK and to make the most of their combined knowledge and expertise and that of the other 25 Royal BAM Group companies worldwide. In particular, the UK companies have worked together on successful BSF bids, have won positions on many leading civil and construction frameworks throughout the UK, and developed a leading position on sustainability and corporate responsibility.’ BAM Construct UK delivers another strong, consistent performance in 2009 BAM Construct UK – highlights of 2009 · Secured presence on a number of key frameworks including National Contractors Framework, Severn Trent Framework, YORbuild, and South West Construction framework
· Won significant private sector projects such as a new headquarters for the Co-operative Group in Manchester and a national rail centre in Milton Keynes for Network Rail · Successfully progressed through the earlier stages of ongoing BSF bids in Coventry and Camden and subsequently emerged as preferred bidder for Somerset BSF · Improved health and safety performance year-on-year, for the tenth successive year, with an AF of 0.48 · Reduced carbon emissions by over 10% in 2009 · Sustained focus on developing staff with construction employees receiving on average 4.2 days of formal training BAM Construct UK - Financial summary 2009 £m 2008 £m Turnover 1,133.6 1,059.4
Profit before tax before property writedowns* 29.9 52.3 Operating margin 2.63% 4.94% *BAM Construct UK made a cost provision in 2009 of £10.3 million (2008 £7.million) against the carrying value of its current property developments in the UK.
Graham Cash, Chief Executive, BAM Construct UK, comments: ‘BAM Construct UK has had another strong year, particularly in construction, with its highest ever turnover. Over the past year we have demonstrated the ability and flexibility to withstand the very difficult market conditions. Highlights of the year include a leading position on frameworks in the UK, an exceptional performance in the education market, and winning some significant private sector projects. ‘Although we have made another prudent cost provision in our property portfolio, this has been compensated for by a strong position our construction turnover and good performances by our FM, Design, Services Engineering and Plant businesses.
‘BAM Properties achieved two sales and a number of significant lettings in late 2009, demonstrating that it is well placed to exploit the reviving market for commercial property. Its strategy all along has been to invest in developing sustainable buildings in prime markets and that is where demand is returning to the market. ‘BAM Construct UK’s facilities management subsidiary, BAM FM, continues to develop and now manages 31 operations in the UK. Along with BAM Construction, it plays a key role in BAM Construct UK’s continued partnership with BAM PPP on bids to build schools under the Building Schools for the Future Programme. BAM FM also provides facilities management services to BAM Properties’ commercial developments. Increasingly, BAM FM is providing support to BAM Construction on site logistics and commissioning new buildings. ‘BAM Construction also achieved its best ever performance in health and safety. In 2009, we maintained our unbroken record of a 10% reduction in accidents year-on-year since 1999.
‘Our commitment to CSR continues to strengthen. We made further progress in reducing our carbon emissions. In 2009, we monitored six months of our community engagement activity using the London Benchmarking Group’s methodology. In a full year our estimated input is 7,000 hours of community engagement by our staff and a cash or in-kind contribution of £400,000. ‘No one expects 2011 to be an easy year. BAM Construct UK’s strategy will be to continue to enhance our expertise and delivery, to perform well on all our frameworks and to encourage our private sector clients back to the market.’ BAM Nuttall delivers a solid financial performance with an enhanced forward order book
BAM Nuttall highlights 2009 · Enhanced order book of £715 million as at 31 December 2009 · Good health and safety performance with an accident frequency of 0.21, maintaining the downward trend · 10% reduction in total company carbon emissions · Record number of employees undergoing vocational and academic training BAM Nuttall - Financial summary 2009 £m 2008 £m Turnover 643.7 650.0
Profit before tax 24.1 28.2
Operating margin 3.7% 4.3% Steve Fox, Chief Executive of BAM Nuttall, comments ‘BAM Nuttall has once again enjoyed a successful year in 2009, despite changing market conditions. The entire workforce has shown great resilience and demonstrated its ability to provide sustained performance. Our financial results reinforce our position as a major civil engineering company in the UK construction market.
‘The forward order book at 31 December stood at £715 million. A number of significant awards in January and February 2010 have added to a solid position for 2010 and helped to build secured work for 2011. With public spending cuts on the horizon, BAM Nuttall continues to focus on projects and sectors where there is greater security of funding. ‘Working in combination with other BAM companies and also some of Europe’s other leading construction organisations, BAM Nuttall is beginning to leverage the business into a superior market position and play a more prominent role in improving the UK’s major infrastructure. This growth can be seen in the substantial contracts that have already been secured in the waste, energy and rail sectors. The company operates in all sectors of the civil engineering market through a network of business units, divisions and subsidiaries with a directly employed workforce of over 3,000 people.
‘Major schemes secured include the upgrade of Tottenham Court Road tube station in London, the Evergreen 3 rail improvement scheme, which will dramatically reduce journey times between London Marylebone and Birmingham and the refurbishment of the north bound bore of the Blackwall road tunnel in London’. ‘BAM Nuttall is fully committed to integrating fully in the local community and has been actively involved in numerous fund raising schemes to assist local charities. A company- wide programme of events took place in September to raise the profile of our journey towards Beyond Zero, many of which focussed on personal health and community engagement. In total Bam Nuttall and its employees were responsible for raising around £125,000 for good causes. ‘Following the first assessment of our carbon footprint in 2008, we have taken steps to reduce our consumption of gas oil on sites. A reduction of some 2.3 million litres of gas oil has contributed significantly to a 10% reduction in CO2 emissions in 2009 compared like for like with 2008’.
‘Our health and safety performance was strong during the year with an accident frequency rate of 0.21 at 31 December 2009. The overall trend continues to be downward as a result of vigorous awareness campaigns driven by our overall vision of achieving ‘Beyond Zero’ health, safety and environmental incidents. ‘Our investment in training and management development remains at a high level with 657 NVQs awarded during 2009, 57 apprenticeships and a further 308 employees undergoing management or further education programmes. Looking to the future, the Board is very aware of the changes in the economic climate and the effect that a restraint in public expenditure will have on the construction industry over the next few years. Our strategy is to remain focussed on maintaining a strong regional presence, supported by work from specific sectors. Rail,highways, waste and energy markets will remain our primary focus.’
ENDS Notes to Editors: Royal BAM Group’s three subsidiary companies in the UK, BAM Nuttall, BAM Construct UK and BAM PPP, deliver a combined turnover of £1.8 billion pa. This positions BAM in the top tier of the construction services sector in the UK.
The BAM companies cover a full spectrum of activities: facilities management, design services, civil engineering, construction, property development, and PFI /PPP project financing.
BAM has a strong regional presence with over 30 offices and plant depots throughout the UK ensuring both a local and a national service to our customers. Royal BAM Group is a worldwide construction services company turning over more than €8 billion and listed on the Euronext Amsterdam.
