Dutch group posts 7% profit rise and says UK arm HBG has held up well despite slight fall in UK turnover
Dutch contractor BAM group has posted a 10% rise in turnover for the first six months of 2008, from 鈧�3.8bn (拢3.1bn) to 鈧�4.2bn (拢3.4bn).
Pre-tax profit rose 7% from 鈧�155m (拢125m) to 鈧�165.6m (拢133m) and the company said its UK arm, HBG, had performed well thanks to wins in the public sector.
The UK arm contributed 鈧�1.1bn (拢854m) to turnover - a slight fall of 鈧�12m (拢9.6m) on last year.
A statement from BAM said: 鈥淭he group has had a good first six months with virtually every sector contributing towards this growth.鈥�
It acknowledged that the credit crunch is taking its toll but said the effects have been limited to its property arm so far.
But an increase in material costs has had an impact on the business. BAM said: 鈥淭he marked price increases for oil and raw materials in particular have exerted pressure on margins in virtually all of the markets where the group operates.鈥�
An HBG statement said: 鈥淭he decline in the commercial property market is only partly affecting HBG UK, but this decline is more than offset by the increasing number of contracts from the public sector.鈥�
The firm recently announced plans to change the name of its UK business from HBG to BAM.
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