Chief Executive’s statement
BAM Nuttall performed exceptionally well in 2012 despite the continuing recessionary pressures within the UK economy and in particular the construction sector.
Our financial results show a fall in turnover from the record set in 2011 to £730m (2011 - £809m) but an enhanced pre-tax profit of £18.1m (2011 - £14.8m) delivering a 2.48% return on turnover compared with 1.7% last year. This level of margin exceeds that which has been achieved by most companies in the civil engineering market and places us amongst the top performing businesses in our particular sector.
The forward order book remains very strong at £1,082m (2011 - £1,045m) vindicating our selective approach to work winning. In 2012 we secured a number of significant projects including the reopening of the Edinburgh to Tweedbank, Borders railway and the Acton Diveunder rail project, both for Network Rail.
We are continuing to work in combination with BAM Group companies and also some of Europe’s other leading construction organisations where appropriate to leverage our business into a superior and sustainable position. Recent examples are the completed project at the Glendoe Hydro scheme, where drill and blast tunnelling expertise was provided by Wayss and Freytag and currently BAM Rail and BAM Contractors are assisting in delivering the Borders Rail project, we have also assisted BAM Construct in successfully delivering the new Network Rail headquarters in Milton Keynes.
Investment continues in embedding our Beyond Zero culture throughout the business with advanced workshops now being delivered by trainers drawn from our own employees. The Beyond Zero in Action workshops build on the lessons learnt in the original four hour workshops. To date over 5,500 people have undergone some form of Beyond Zero training, which include many members of our supply chain.
We continue to maintain a high level of investment in learning and development activities for all of our employees and our supply chain. The Company achieved a record intake of apprentices in 2012 embracing craft skills, engineering and quantity surveying.
Awareness and understanding of our energy requirements and waste handling capabilities continues to grow. In 2012, a number of very large and energy intensive sites such as the Olympic Park, Olympic Legacy and numerous Crossrail projects, contributed to a 13% increase in our corporate carbon footprint from 2011. Consumption of gas oil rose by 8% and electricity use increased significantly as expected and mainly attributable to the driving of the Crossrail tunnel boring machines.
Total waste handled on behalf of our customers continues to rise slightly year on year. 92% of 2012 waste material was generated from on-site excavation. We comfortably achieved the WRAP construction industry target to reduce waste to landfill by 50% by 2012. BAM Nuttall has more than doubled waste diverted from landfill from approximately 40% in 2008 to 84% in 2012. We have also achieved a significant 41% reduction in construction waste since 2009.
On behalf of the Board, I would like to thank all BAM Nuttall employees, our customers and our supply chain partners for their contribution towards achieving our 2012 results.