Bam profits up

Bam Construct UK, part of Dutch-based Royal Bam, has reported turnover for 2016 of £1.1bn, up 19%, with gross profits up 32% to £59m.

The firm reported pre-tax profits of £26.2m for the 12 months to the end of December 2016, more than double 2015’s figure, boosted by a £12m exceptional gain resulting from an adjustment to the group’s pension scheme. Underlying operating profits rose 9.2% to £14.2m.

Bam’s order book was 4% down at £1.72bn.

The firm’s construction division notched up turnover of £987.6m, a rise of 22%, while pre-tax profits were down by £200,000 at £5.3m.

Bam said the division completed 55 projects and won 36 new projects during the year, including developer Argent’s Coal Drops Yard at King’s Cross designed by Heatherwick Studio and Three Snowhill, a 19-storey tower in Birmingham for Ballymore Estates. It said that 55% of the work secured represented repeat business.

The contractor will look at expanding into the private rental sector this year as it looks at potential growth opportunities and also plans to broaden its property development division targeting student accommodation and commercial development having reorganised its portfolio.

Graham Cash, Bam’s chief executive, said the group had actively sought clients using a two stage tender procurement process. “We have a full design practice, and a services engineering division, we are able to assist a number of clients to achieve realistic cost plans and manage budget constraints through value engineering and creating better design options. 

“We have been tendering ever more selectively to ensure we focus on those schemes which maximise our differentiating capabilities,” he added.

In the wake of the UK’s decision to leave the EU, Bam said it was “currently unable to estimate the impacts, if any, on the company’s property valuation or the prospects for the business generally”.