Contractor anticipating expansion of order book this year
Bam Construction has reported a loss of £31.4m in 2023.
According to annual results posted at Companies House, profitability in the year to 31 December 2023 was impacted by high inflation and “unprecedented levels of supply chain liquidations”.
The loss compared unfavourably to the profit of £21.6m recorded in the year prior.
Revenue was also down, from £900.9m to £897.6m.
The value of Bam Construction’s forward order book stands at £606m, down from £971.6m at the end of the previous year.
According to the group: “Orderbook has been impacted by project commencement delays as we support customers in addressing affordability challenges, through extended PCSAs, as a result of the inflation and interest rate environment.
“This is showing signs of easing with increased numbers of projects expected to come to market in 2024”
In interim results published last month, Bam revealed it had lost a further £20m in the six months to June this year.
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It blamed this on project delays and supply chain issues “and included a substantial loss in the second quarter of 2024 for Co-op Live in Manchester”.
The £20m figure is set to grow as the job is still not finished although the firm said that it, along with two problem school jobs in Denmark, “are almost completed”.
The company recently began a redundancy consultation with 40 staff working at the Northern and London arms of its construction business.
The firm employs 2,200 people across its UK construction division.
It has five regional business units - covering Scotland, Northern, Central, London, and Western - having undertaken a restructure to reduce this number from seven in July 2023.
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