‘Good progress’ for Bam
19 February 2015
Dutch-based Bam Group has reported pre-tax results of €62 million for 2014, boasting good progress for its Back in Shape programme.
The figure follows a fall in half-year revenues in early 2014, and the proposal to merge two of its operating companies, Bam Civiel and Bam Wegen, with effect from 1 January, 2015.
Bam Group CEO Rob van Wingerden identified “a weak year” in the operational sectors of civil engineering and construction as the main source of losses in 2014. But financial reports show that this was offset by higher results in property and public-private partnerships (PPP). The company attributed the majority of a 4% rise in revenue over 2013 to the divestments of commercial properties, alongside the positive influence of the stronger UK Pound.
Accounting for €53 million of the €68.8 million restructuring costs in 2014, the Back in Shape programme will incur an additional charge of approximately €30 million in 2015, he said.
Looking ahead, van Wingerden said, “We are on course to deliver cost savings of at least €100 million and a reduction in trade working capital of at least €300 million by year-end 2015.”
He also said he expected a higher group adjusted result before tax for the coming year, with “a larger contribution coming from the operational sectors”.
The group identified the 2014 closing order book of €10.3 billion as broadly stable compared to €10 billion at the end of 2013.
