BAM set to compete with UK top three
Dutch Contractor has big plans for UK after rebranded subsidiaries post turnover and profit rises

New BAM board director Martin Rogers claimed that the firm’s UK rebrand was helping it compete with the industry’s biggest, as it announced an increase in UK turnover this week.

The BAM Nuttall chief executive – appointed to the board of Royal Bam Group this week – said the Dutch parent company’s strength allowed Bam to chase the same projects as the UK’s top three contractors.

Edmund Nuttall was last year rebranded as BAM Nuttall, with HBG becoming BAM Construct.

The combined pre-tax profit for BAM Nuttall, BAM Construct and PFI vehicle BAM PPP increased 39 per cent to £94.4 million in 2008. Turnover rose to £1.75 billion, from £1.64 billion in 2007.

Overall, BAM’s UK operations contributed more than 42 per cent of the group’s pre-tax profit, and 23 per cent of its turnover.

Mr Rogers said: “We see the business now being equally influential across all markets against the likes of Laing O’Rourke, Carillion and Balfour Beatty.

“It has been very positive and, given the market conditions, strengthens the group. It brings in the strength of the European operation to raise profile.”

Overall, the BAM group saw revenue drop slightly to £7.8 billion from £7.9 billion in 2007, while pre-tax profit fell to £223.5 million from £372.8 million. In comparison, Balfour Beatty had a 2008 turnover of £8.3 billion, while Laing O’Rourke and Carillion were nearer the £5 billion mark.

BAM Nuttall proved to be one of the group’s best performing divisions, with its own pre-tax profit increasing 48 per cent to £28.4 million. The firm’s revenue totalled £650 million.

Meanwhile, BAM Construct revenue totalled £1.06 billion, from £1.04 billion the previous year, while pre-tax profit amounted to £52.4 million. BAM PPP contributed £40.6 million of revenue in the UK and added £13.6 million of pre-tax profit to the pot.

Highlights for BAM Nuttall last year included completing the London Olympic Stadium platform three months early, and winning a contract to enlarge a dry dock at Rosyth in Scotland in preparation for the construction of new Royal Navy super carriers.

Mr Rogers said: “Our strategy is to maintain our strong sectors and geographies in the short term, and break into the strong new markets in the medium term. We are also looking to break into emerging markets in nuclear, waste and power sectors.”

Article courtesy of Construction News (23/04/2009)


Further Info
Peter Bishop - Head of Public Relations & Corporate Communication
BAM Nuttall Limited
St James House, Knoll Road, Camberley,
Surrey GU15 3XW
Tel: 01276 63484
Fax: 01276 66060
peter.bishop@bamnuttall.co.uk