BAM to wind up International subsidiary
02 July 2020
The executive committee at Royal BAM group has announced it will wind up its BAM International subsidiary, the company that operates outside of BAM’s European home markets.
The group said it expected to announce a loss of between €130 million and €150 million in its half-year results, leading it to the decision to initiate the winding up process on the overseas business.
In its press release, BAM also cited the damaging impact of its recent €200 million settlement with the city of Cologne, over a fatal accident during the construction of the Cologne Metro.
It further highlighted the underperformance of its German construction and Dutch civil engineering business.
Frans den Houter, CFO and interim CEO, said, “The combination of Covid-19 and the ongoing underperformance of BAM International in the second quarter, has led to a severe impact on profitability. We will immediately start the process of winding down BAM International, which was already under strategic review. This is harsh for the employees involved, however it is necessary and cannot be delayed.
He added, “It is clear that Covid-19 is causing unprecedented challenges for society and our industry. As a first priority, we have taken measures to safeguard a healthy and safe working environment for our people and others involved. Our various markets have been impacted very differently by Covid-19. Some were shut down completely, while others remained open. We lost approximately 35 per cent operational efficiency through the first two months of the crisis and are now getting back to 80 per cent.”