Pre-tax profit fells at Bam Nuttall
Turnover last year for Bam’s UK and Ireland operation increased marginally to £2.8bn, the Dutch firm’s latest results show.
Accounts for the 12 months to December 2022 showed revenues rose 5% from £2.7bn, with the construction business contributing significantly, but pre-tax profit was down to £73m from £79m in 2021.
Revenue from Bam Nuttall, the group’s civil engineering business, edged up to £1.06bn but profit fell from £27m to £20m, impacted by supply chain issues on some of the firm’s larger contracts. Revenue from its UK building arm was up 8% to £908m.
Ruud Joosten, chief executive of the Royal Bam Group, said the UK and Ireland division had been “held back by inflation, supply chain issues and delays at some projects”.
The firm’s order book remained firm at £4.8bn, despite being hit by the £530m reduction in UK highways following the government’s review of its regional road development programme.
The firm’s results in Ireland were positively affected by its share of a claim settlement relating to the Museum of the Future job, it reported.
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Bam identified rail, road and energy as growth sectors within UK infrastructure, while education, health, offices and leisure were picked out as key construction markets.
The financial report also referenced an investigation into Bam’s international business by Dutch financial authorities into suspicions relating to potential fraud and corruption at some already completed projects.
It said the potential adverse financial impact of this investigation could not be reliably estimated but that it “could be material”.
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