Dutch contractor Bam has reported adjusted pre-tax results for the first half of the year of €57.8 million and has reconfirmed its outlook for the full year.
CEO Rob van Wingerden said, “Despite the previously announced €30 million additional cost overrun at sea lock IJmuiden, our first half result was above last year’s.
“Most of our businesses showed improved results supported by some settlements. The cash outflow for the first half of 2018 was higher than in the first half of 2017, mainly due to IJmuiden and the absence of large non-residential property divestments – our financial position remains solid.”
He said that half-way through the group’s five-year strategic period, it was not yet where it wanted to be, although it added that the company had made good progress in many areas.
“As we need to further improve our performance and predictability, we will be even more selective in tendering for large projects. We are discussing with our public sector clients on ways to improve the risk and reward balance and contract conditions.
“We are also revitalising our working capital programme. Overall, we are confident that more rigorous strategy execution will enable us to deliver on our 2020 targets supported by our digital and sustainability agenda.”
Conditions in most of its markets were favourable, said van Wingerden, although challenges such as supply chain pressure remained.
“We reconfirm our outlook for full year 2018 of an adjusted result before tax margin of around 2%,” he added.
Revenue of €3.24 billion for the first half of 2018 showed growth of €125 million or 4% compared to the first half of 2017, and this was driven by civil engineering.
The adjusted result before tax for the first half rose to €57.8 million, giving a margin of 1.8% compared to the first half of 2017 when it was 1.3%. The growth was driven by construction and property where most businesses reported improved results. The margin at civil engineering was said to have been held back by the Netherlands, but partly offset by improved results in all other activities.