Bam revenues improve

Bam achieved revenues of € 1.68 billion for the first quarter of the year, a +8.6% increase on the figure of € 1.54 billion seen a year ago. The company's net profit for the quarter doubled to € 20.1 million, but this represented a margin of just 1.2%.

The company's largest division, construction, saw only a +2% rise in revenues last year to € 669 million. More significant for the company's results was that its Property division saw revenues grow +13% to € 128 million, with the division achieving an operating profit, as opposed to the heavy loss seen a year ago. Bam said its property business did well in Belgium and broke even in the Netherlands, however, there were losses in the UK and Ireland.

The other major improvement was seen in its Public Private Partnership (PPP) business, where revenues leapt +47% to € 94 million for the quarter. This was driven by two major contract wins in Belgium.

In addition, Bam has set up a joint venture with Dutch pension fund administrator PGGM to invest in PPP contracts. This will provide bam with a long-term source of capital for existing and future projects as well as improve its balance sheet position thanks to the transfer of some € 150 million of current contracts to the joint venture.

Overall, the company said it was satisfied with its performance. "Bam's results for the first quarter were stable and in line with expectations, underpinned by successful execution on large projects. Looking ahead, we maintain our expectation of a net profit level of € 120 million for 2011, taking account of increased pressures on margins for new orders." Said Nico de Vries, chairman of the company's Executive Board.