The combined turnover for BAM Construct UK, BAM Nuttall and BAM PPP for the year ending 31 December 2010 was 拢1.79bn with a combined pre-tax profit of 拢36.7m.
Executive board member Martin Rogers said: 鈥淭he turnover result positions Royal BAM Group鈥檚 UK operations in the top tier of the UK market. BAM Construct UK, BAM Nuttall and BAM PPP report a healthy order book position with a figure of 拢2.76bn at the year ending 31 December 2010. The companies are performing well in the face of difficult market conditions.鈥�
BAM Construct UK
榨汁姬 turnover at BAM Construct UK was down less than 1% to 拢1037.2m, from 拢1,133.6m in 2009. Profit before tax and before property writedowns slipped from 20009鈥檚 拢29.9m to 拢24.6m, giving a margin of 2.37%, down from 2009鈥檚 2.63%. BAM Construct UK made a cost provision in 2010 of 拢7.5 million (2009 拢10.3 million) against the carrying value of its current property developments in the UK.
BAM Construct UK Graham Cash chief executive said: 鈥淭he economic cycle for major contractors means we enter the worst of the recession comparatively late, and trading conditions for the next two or three years will therefore be extremely challenging. Under these circumstances, our results are very strong. We have an enviable overall liquidity position of 拢271m, and nearly 拢1.8bn work in hand.
鈥淓very one of BAM鈥檚 seven regional construction divisions was profitable with turnovers of 拢100m or more. BAM鈥檚 integrated business model also includes BAM Design, BAM Services Engineering and BAM FM (Facilities Management) all of which also made profits.鈥�
Mr Cash added:鈥楶ublic spending cuts have affected our business already and our supply chain. The early signs of recovery in the property and commercial markets promise more in the southeast than in the north of England and Scotland, where trading conditions are the most difficult.鈥�
BAM Nuttall
BAM Nuttall, the civil engineering arm, saw turnover rise nearly 8% to 拢694.8m, up from 2009鈥檚 拢543.7m, but pre-tax profit slid 35% from 拢24.1m in 2009 to 拢15.7m. Operating margin decreased from 3.7% to 2.2%.
BAM Nuttall chief executive Steve Fox said: 鈥淒espite the challenging market conditions, arising from the recession and the substantial spending cuts imposed by the new government, BAM Nuttall has had another very successful year. The financial results reinforce our position as one of the UK鈥檚 leading civil engineering businesses. Turnover reached a new record of 拢694.8m. Pre-tax profit at 拢15.7m is down on 2009 levels but exceeds the forecast at the start of 2010 and still represents an industry leading percentage result. The forward order book also stands at a new record level of 拢967m. This reflects the significant contracts that were secured in 2010 including Victoria Station Upgrade, Managed Motorways, Crossrail Station Caverns and Western Running Tunnels, Luton Dunstable Guided Busway and Northumbria Water Framework. Our focus is on pursuing work with secure funding and adopting selective bidding practices, including continuing to work with our carefully selected partners.鈥�
Mr Fox added: 鈥�2010 proved to be our best ever year in health and safety performance with the total number of lost time incidents down by 40% and those resulting in more serious injuries showing a 25% reduction, both on 2009 figures. The use of Observation Cards has increased significantly, indicating a further improvement in our workforce engagement in accident prevention. We were awarded a number of important 榨汁姬 Industry Safety Awards including RoSPA, 榨汁姬 and Network Rail.
鈥淎lso very encouraging is our performance in reducing waste sent to landfill. Our efforts in 2010 mean that we have now seen a 70% drop since 2008 and this puts BAM Nuttall ahead of the 2012 WRAP 50% target.鈥�
BAM PPP UK
BAM PPP reported turnover of 拢60.8m in the UK in 2010 and pre-tax profit of 拢3.9m. Value of work in hand at year end was 拢840m.
BAM PPP director Robert Young said: 鈥淪uccess was achieved on two Building Schools for the Future bids with BAM Construct UK. Work began on the Borders Railway bid with BAM Nuttall and BAM Rail; this will continue throughout 2011. Beyond these projects BAM PPP is positioning itself with its sister companies and other partners for a number of major infrastructure and accommodation PPP projects scheduled to commence in 2011. These projects have a combined capital value in excess of 拢1 billion.鈥�
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