Dutch parent of Bam Construct and Bam Nuttall posts heavy losses in construction and civil engineering businesses, including a 拢3m loss in the UK
Royal Bam, the Dutch parent of Bam Construct and Bam Nuttall, has posted heavy losses in its construction and civil engineering businesses, including a 拢3m loss in the UK.
Reporting its results for the first half of 2014, Royal Bam posted revenue of 鈧�3.38bn (拢2.7bn), up 5% on 鈧�3.23bn (拢2.58bn) in the first half of 2013.
But it reported a 0% margin across the group and a pre-tax loss, after impairments and pensions costs, of 鈧�6.6m (拢5.3m).
Before these one off costs, pre-tax profit stood at just 鈧�100k (拢80k).
The group鈥檚 performance was dragged down by heavy losses in its construction and civil engineering arms.
The construction and M&E business posted a 鈧�6.8m loss (拢5.4m), compared to a 鈧�1.1m (拢800k) loss over the first half of 2013, while the civil engineering business reported a 鈧�19.2m loss (拢15.3m), after posting a 鈧�9.9m profit (拢7.9m) over the same period a year ago.
Revenue in its civil engineering business rose 4% to 鈧�1.86bn (拢1.49bn), while the construction and M&E business posted a 16% fall in revenue to 拢1.36bn (拢1bn).
The firm said the loss in its civil engineering business was due to a combined loss of 鈧�68m (拢54m) on two problem projects in Germany and the UK,
Bam said it had 鈥渢aken effective actions to ensure these projects are stable and will be delivered on schedule鈥�.
Royal Bam said the 鈧�100m (拢80m) cost cutting drive it announced in July was underway and would be completed by 鈥渆arly October鈥�.
In the UK the group reported a 鈧�3.8m loss (拢3m), compared with a 鈧�9.1m profit (拢7.3m) over the first half of 2013, although revenue rose 8% to 拢927m.
Royal Bam said the loss in the UK related mainly to its problem civil engineering job, which it bid in 2012.
The losses in the firm鈥檚 civil engineering and construction businesses were offset by profits from the group鈥檚 property and PPP investment arms.
Over the full-year, Royal Bam said it expected a profit before tax, impairments and restructuring costs of 鈧�20m (拢15.9m).
The firm warned 鈥渢here will be restructuring charges in the second half of 2014 and in 2015鈥�.
Royal Bam Group chairman Nico de Vries said: 鈥淭he results for the first half of 2014 show a mixed performance. In our two operational sectors, we continue to work through orders booked under very difficult market conditions - especially in the Netherlands.
鈥淭he two civil engineering projects with major losses which we announced on 7 July are stable; other projects delivered strong results, supporting the overall sector result for the first half.鈥�
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