Bam first half revenues rise

Dutch contractor Bam reported first half revenues of €3.6 billion, up from €3.4 billion in the first six months of 2010, while net profit stood at €65.8 million, a €15.2 million year-on-year increase.

The positive figures came despite "extremely competitive" market conditions and a slip in revenues from Bam's construction division.

Construction revenues fell €45 million in the first half to €1.4 billion after increased sales in the Netherlands and Germany were offset by reductions in the UK and Belgium. Net profit from construction was €41.7 million, down from €46.2 million for the first half of last year.

Offsetting this, Bam's civil engineering division reported a €17.2 million rise in net profits for the first half to €47.3 million on revenues of €1.8 billion - up €145 million year-on-year.

The company's property division also turned around last year's €20.4 million net first half loss to report €1.2 million net profit on revenues of €305 million, compared to €249 million in the first six months of 2010.

'Difficult conditions'

Chairman of Bam's executive board Nico de Vries highlighted the fact that all of Bam's business divisions had closed the first six months of the year in profit, despite "difficult market conditions".

But Mr Vries was not bullish on future prospects, adding, "However, due to the recent unrest on the financial markets, increased pressure on prices and ongoing uncertainty, we are maintaining our previously announced profit forecast."

"We remain focused on reducing the amount of capital invested - especially in the property sector - as well as on being extremely careful when tendering for new projects," he said.

The company forecast full-year net profit of €120 million.