Dutch giant points finger at losses in Germany and the Middle East
Cost overruns on projects in Germany and the Middle East combined to hit Bam鈥檚 results in 2019, with group pre-tax profit more than halving, while overall turnover remained flat.
The Dutch construction giant reported pre-tax profit of 鈧�74m (拢62m), down from 鈧�153m (拢128m) in 2018. Turnover was level at 鈧�7.2bn (拢6bn).
Bam, which owns Bam Construct and Bam Nuttall in the UK, posted losses of 鈧�94m (拢79m) on jobs in Germany and the Middle East, according to chief executive Rob van Wingerden.
Van Wingerden, who will step down as Bam鈥檚 chief executive in April after six years in the job, said the group鈥檚 performance had recovered in the second half after a poor start to the year, and the final full year margin of 1%, half that of 2018, had been line with expectations.
He noted strong contributions from the firm鈥檚 UK operation in both construction and civil engineering.
The firm鈥檚 UK construction operation saw revenues slightly down in 2019 at 鈧�1.1bn (拢900m), while the division鈥檚 profit rose 12% to 鈧�35.7m (拢30m). Looking ahead the firm鈥檚 work on large framework contracts would bolster the business, van Wingerden said.
Bam鈥檚 construction arm in Scotland this week started work on a new 拢19m health centre in Clydebank.
The three-storey building is expected to be completed in the autumn of 2021.
On the UK civils side van Wingerden said Bam Nuttall delivered a good result including a stronger performance in the second half year. Profit dipped 15% to 鈧�23m (拢19m) on turnover up 4% at 鈧�876m (拢734m).
The outlook for civils鈥� activity in the UK may still be affected by Brexit, van Wingerden said, but he was encouraged by the UK government鈥檚 support for HS2.
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