The UK arms of Dutch construction giant Royal Bam reported increased profits of €20.6m (£16.9m) on falling turnover in the first half of this year

Profits rose by a third on the same period last year, having reached just €15.5m (£12.7m) in 2009. However, turnover dropped 9.5% to €885m (£727m).

Bam said it had increased the value of its future order book in the UK, contributing to a €12.4bn (£10.2bn) total across the group.

Profit at its UK construction division was hit by high tender costs and cuts to Building Schools for the Future, while turnover fell 16%.

Bam did not rule out job cuts in “a number of regions” in the next six months. But its infrastructure arm, Bam Nuttall, performed well, despite “intense competition” in the marketplace.