30 April 2012 - Royal BAM Group companies in the UK are performing resiliently in the current market conditions according to results posted for the year ending 31 December 2011. The combined turnover for BAM Construct UK, BAM Nuttall and BAM PPP, amounted to £1.8 billion with a combined pre-tax profit of £28.9 million and a margin of 1.6%. The combined forward order book is £2.8 billion. Martin Rogers, member of the Executive Board of Royal BAM Group, said: ‘The UK companies have focussed on maintaining quality, making new strides in sustainability, and innovations such as Building Information Modelling (‘BIM’), in order to continue to provide a customer focussed service. Around the world, and in the UK, our customers are facing new business challenges. We know that our success depends on how well we understand and deliver to their changing needs.’ ‘The steady performance is the result of a heightened focus on prudently managing the difficulties inherent in the UK market. The companies have resisted the temptation to bid at unsustainable prices, have concentrated on maintaining standards and additional management and supervision of the supply chain. Above all, in these uncertain times, the UK companies offer customers the reassurance of stability, certainty, quality, and excellent risk management.’ BAM Construct UK broadens its customer base BAM Construct UK - highlights
· Healthy liquidity of £211.7 million · 75% of projects in 2011 had no reportable accidents
· Leading performance on academies frameworks and significant local frameworks · Pioneering building information modelling
BAM Construct UK - financial summary 2011 £ m 2010 £ m Turnover 945.9 1,037.2
Profit before tax 11.5 17.1 Operating margin 1.2% 1.6% Graham Cash, Chief Executive of BAM Construct UK, said: ‘The company has demonstrated great flexibility and versatility in 2011, completing projects that ranged in value from £1 million to £132 million. We remain dominant in the education and health care sectors but also work on leisure and on renovating and refurbishing buildings that are part of Britain’s heritage. In 2011, we won business from important new clients such as Network Rail and positioned ourselves for new areas of work such as qualifying to bid for the MoD NGEC framework. Our FM, Design and Services Engineering businesses did well and continue to offer value and innovation to our construction customers. Meanwhile, our property arm bucked the market by achieving a number of sales and lettings at full value. We are not complacent: we expect market conditions to remain demanding in the medium term. However, I believe that the BAM Construct UK has the ambition to continue to perform well and to be distinctive for the way we work with our customers to deliver their aspirations.’ BAM Nuttall performs strongly with secure outlook BAM Nuttall – highlights · Record level of turnover at £809 million · Excellent order book value at £966 million with significant contract awards from Crossrail and Olympic Park Legacy Company · Our Health and Safety record continues to improve through our focus on employee engagement, sharing lessons learned and visible leadership · Significant investment in embedding our Beyond Zero cultural change programme, aimed at sustained business improvement. BAM Nuttall - financial summary 2011 £ m 2010 £ m
Turnover 809 694
Profit before tax 14.3 15.7
Operating margin 1.8% 2.2% BAM Nuttall’s Chief Executive, Steve Fox, said: ‘BAM Nuttall has had another successful trading year despite the poor growth outlook for the UK economy and the bleak forecasts for the construction sector as a whole. The financial results reinforce our position as a leading UK civil engineering business with a record level of turnover at £809 million. Pre-tax profit of £14.3 million reflects increased price competition within our sector but has still delivered a 1.8% return on turnover. The forward order book remains constant at £966 million. This reflects the significant contracts that were secured in 2011 including the construction of a reinforced concrete building for AWE as part of MENSA Phase two, the construction of the new Farringdon station for Crossrail, the marine transportation of surplus earthworks for Crossrail and two contracts to carry out substantial site transformation work on behalf of the Olympic Legacy Company. Our focus continues to be the pursuit of work with secure funding while adopting selective bidding practices, including strategic collaboration with carefully selected partners.’ BAM PPP in the UK strongly positioned for future projects
2011 £ m 2010 £ m Turnover 55.7 60.9 Profit before tax 3.1 3.9
Work in hand 483.6 839.9 Robert Young, Managing Director of BAM PPP in the UK, said: 'During 2011 BAM PPP continued to work closely with Royal BAM Group companies and other partners in bidding and positioning for major infrastructure projects in the transportation, health and education sectors. BAM PPP also established an investment joint venture with Dutch pension fund administrator, PGGM, with equity funds of approximately £200 million to invest in future projects. This unique partnership has developed strongly and the outlook for 2012 and beyond is promising. The work done during 2011 has further strengthened the BAM brand and reinforced the Group’s position, in conjunction with PGGM, as a major participant in the UK PPP marketplace.'
