BAM’s UK construction business suffered a £13m loss last year, whereas BAM Nuttall trebled its profits
The two UK arms of Dutch construction group Royal BAM Group had rather different years, with one reported tripled profits and the other a £13m loss.
BAM Construction, which along with BAM Properties is part of BAM Construct UK, cited supply chain issues and cost overruns at a large project as cause for the significant loss.
However BAM Nuttall, which covers civil engineering works, enjoyed profits rising to £66m, from £19m in 2022.
The success was attributed to a legacy project settlement and improved project results overall. A noticeable uplift saw profit margins rise from 1.8% in 2022 to 5.7% in 2023.
Overall, combined UK and Ireland profit was healthy
BAM Nuttall strong performance brought up the combined UK and Ireland operations to an almost 50% rise in profit to £104m from flat revenue at £2.68bn.
Ruud Joosten, CEO of Royal BAM Group said: “The performance of Construction UK disappointed due to supply chain issues and cost overruns at a large project.
“Civil engineering UK, Ventures UK and Ireland contributed well.”
Energy infrastructure development is likely to maintain civils success
Joosten said: “The 2023 UK Energy Act to strengthen energy security and support the delivery of net zero is a positive development.
“BAM is positioned strongly in the energy market, following the successful execution of projects in this product market combination.”
