BAM's stable first half
By Sandy Guthrie26 August 2010
Dutch-based construction company Royal BAM Group's net profit for the first half of 2010 was € 50,6 million compared to € 41.9 million last year, while revenue fell by 15% compared to the same period 12 months earlier - € 3430 million compared to € 4043 million last year.
The company said the main reason for the fall in revenue was reduced volume in residential construction and property. It said all sectors ended the first six months of this year in the black, with the exception of the property sector.
BAM said that the Dutch operating companies in the construction sector achieved good results, adding that the -18% reduced revenues over the first half of last year could be attributed to shrinking construction output.
On the Dutch construction market, BAM reported that the demand for housing and office space remained at a low level. For non-residential construction, BAM has a healthy order book which it said was based primarily on "(semi-)public sector projects".
Revenue in the UK fell by -16% in the first six months of this year. It said the profit contribution was positive, but was negatively affected by the high tendering costs involved in acquiring new contracts.
BAM Deutschland reported substantially-reduced revenues - partly because of the harsh winter months and partly through the postponement of a number of projects. BAM said the margin on the revenues was good for the German market, and in line with group forecasts.
Lower but still good results compared with the first half of 2009 came from Belgium, according to BAM. It said the order book was well filled following the recent acquisition of such substantial contracts as the principal seat of the European Council and the NATO Headquarters.
In the civil engineering sector, BAM said that Dutch companies achieved a similar margin to the same period last year, but from increased revenues.
The main increases, it reported, were in the revenues from BAM Infratechniek and BAM Rail. BAM Civiel performed significantly better than last year, it said, while BAM Wegen had not been able to compensate fully for the harsh winter's negative impact on the result. A good contribution to the year as a whole was expected from BAM Wegen.
In the UK, BAM Nuttal performed well, and Belgian civil engineering activities made a good contribution to profit. In Ireland, BAM Contractors made a modest profit despite reduced revenues, but Germany's Wayss & Freytag Ingenieurbau made a small loss from sharply reduced revenues in the first six months of 2010.