But UK firm plans to counter public spending cuts with refocus on civils work
BAM's construction division recorded its highest ever turnover in 2009, but the UK company said it would focus on civil engineering work as public spending cuts take hold.
BAM UK, which includes BAM Construct UK, civil engineering firm BAM Nuttall and BAM PPP, posted turnover of £1.8bn (against £1.75bn in 2008) and a pre-tax profit of £49m (2008: £94m). But the group is bracing itself for public spending cuts.
A BAM UK statement said: “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 focused on maintaining a strong regional presence, supported by work from specific sectors. Rail, highways, waste and energy markets will remain our primary focus.”
BAM Construct UK posted turnover of £1.1bn (2008: £1bn) and a pre-tax profit of £30m (2008: £52m). Highlights included winning the Milton Keynes national rail centre contract and being selected as preferred bidder for Somerset's Building Schools for the Future programme. It also completed Webb House offices in Camden.
Graham Cash, chief executive of BAM Construct UK, said: “No one expects 2011 to be an easy year. Our 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.”
The group's civils division, BAM Nuttall, recorded a turnover of £644m (2008: £650m) and a pre-tax profit of £24m (£28m), while its forward order book at 31 December was £715m.
It has picked up a string of major deals in recent months, including a £700m contract to redevelop Victoria Underground station and a £500m deal to redevelop Tottenham Court Road station, both in a joint venture with Vinci division Taylor Woodrow. It also secured a £190m contract to redevelop rail links between Birmingham and London for Chiltern Railways.
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