Contracting group will embark on cost-cutting drive after hits on problem jobs in the UK and Germany
Royal Bam Group will embark on a 鈧�100m (拢79m) cost cutting drive after being hit by 鈧�75m (拢60m) of losses on problems jobs in the UK and Germany.
Royal Bam, the Dutch parent company of its UK-based divisions Bam and Bam Nuttall, said the 鈥渃ost reduction programme鈥� would come for 鈥渟treamlining鈥� the structure of its operating companies.
In the UK 鈥渦nexpected problems at a mid-sized civil engineering project鈥�, bid in 2012, caused by 鈥渁 combination of adverse ground conditions and bad weather鈥�, contributed to the project losses.
In Germany 鈥渄eterioration of a large civil engineering project鈥�, also due to 鈥渁dverse ground conditions鈥�, was also 鈥渙ne of the handful of loss-making projects鈥�, Royal Bam said.
The firm said it will consider 鈥渁ll other opportunities to further strengthen its financial position, including divesting other assets.鈥�
Nico de Vries, chairman of the executive board, said: 鈥淚 am extremely disappointed to have to announce these negative developments.
鈥淥ur underlying strategy is the right one, but our delivery has not been good enough. It is fully clear to the executive board that BAM must act urgently and decisively to get all parts of the group to contribute positively to our results. That is why we are taking the actions being announced today.鈥�
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