Dutch engineering giant posts fall in revenue and profit for half-year
Bam has reported a slight increase in its income from UK activities, helping to mitigate an 11% fall in revenue overall in the first half of the year.
The Dutch engineering giant, in its half-year results today, reported a drop in turnover from 鈧�3.33bn to 鈧�2.97bn, due largely to its decision to divest firms in Germany and Belgium, which reduced income by 鈧�336m. The group鈥檚 overall pre-tax profit for the half-year fell from 鈧�108.9m to 鈧�72m.
The firm鈥檚 UK and Ireland divisions reported an 0.6% increase in turnover to 拢1.56bn, despite a 30% decline in revenue in Ireland due to 鈥減rogress on large contracts.鈥� It said the British pound exchange rate also had a 鈧�50 million negative effect on revenue.
Its construction revenue in the UK dipped by 2.7%, which it said was due to 鈥渋nflation and supply chain challenges on some larger contracts鈥�, but this was offset by civil engineering income increasing 6.4%.
The firm鈥檚 Netherlands division reported a revenue drop of 3% which it said was fuelled by political uncertainty and cost increases delaying project awards.
The group鈥檚 UK and Ireland division increased its EBITDA margin from 3.1% to 4%. However, its order book declined by 12% to 鈧�4.8 billion due in part to the cancellation of a 鈧�300 million highways framework contract by the government.
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Bam鈥檚 overall pre-tax profit for the half year is 鈧�72m, down 33% year-on-year.
Bam has recently announced several project wins including additional works for HS2, two electricity grid converter stations, a three-year contract with the Tudor Grange Academies Trust to deliver integrated facilities management services and a new school building at Sunderland鈥檚 Farringdon Community Academy.
Meanwhile Bam鈥檚 civil engineering arm Bam Nuttall in accounts published on Tuesday reported an 84% drop in pre-tax profit in 2022 compared to the previous year, saying supply chain issues had affected projects.
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