BAM Construct UK has reported what it called a “solid, stable performance” in 2017 despite a dip in revenue and pre-tax profit.
Profit before tax was £19.3 million (2016: £26.2 million) while revenue was £957.5 million (2016: £1,072.2 million), producing a margin of 2%. Operating profit increased by 40% before exceptional items.
BAM Construction, the largest subsidiary of the company, had revenue of £903.6 million. The construction business saw a rise in profits from £5.3 million to £20.9 million.
BAM revealed it has no debt. Cash at the year-end was £82.3 million (2016: £116.6 million) and its order book was £1,624 million (2016: £1,654 million).
Chief executive James Wimpenny said, “These results reflect our delivery of Royal BAM Group’s strategy, ‘Building the present, creating the future.’
“BAM Construct UK has been consistently profitable for more than a decade. We operate in a high risk, low margin industry. We believe our stability and predictable performance is attractive to clients and our supply chain and is one of the reasons why much of our work is repeat business.
“I am also very pleased that we reduced the number of RiDDOR accidents by nearly half in 2017 (13 down from 25 in 2016) and our incident frequency rate is the second lowest among Build UK members.”
Mr Wimpenny confirmed the strategy will continue to be founded on “operating efficiently and managing cash effectively”. He added, “We aim to stay at the forefront of digital construction and data management. We are able to offer an integrated range of services across the lifecycle of a building and we will maintain our focus on competing for complex, high value work with clients who appreciate quality over price and value a collaborative approach.”
BAM Construct UK’s companies include BAM Construction, BAM Properties, BAM Design, BAM Services Engineering, BAM Plant and BAM FM.