BAM UK profits steady despite slide at civils arm

Civils contractor Bam Nuttall was impacted by supply chain issues on some larger contracts last year denting profits, which fell 25% to around £19m.

But the civils arm continued to maintain its position ahead of building as the biggest UK contracting operation with revenue slightly up at £1.06bn.

BAM Construction enjoyed a much more profitable 12 months with EBIDA jumping 27% to £30.4m, on revenue up by around 8% to £908m.

Ruud Joosten, CEO of Royal BAM Group, said that the UK and Ireland order book remained solid at a level of £4.6bn despite economic headwinds.

This includes a reduction of around £500m in UK highways following a government review of the regional roads development programme, £256m negative exchange rate effect and selective tendering.

Big project wins in 2022 included Parkhead Health Centre in Glasgow, Manchester Airport Group’s Major Capital Works and Northern Irelands Water’s Major Project Partnership Framework.

In the UK, BAM warned that the growth infrastructure spend may be scrutinised due to wider economic impacts.

Joosten said that the longer-term outlook for BAM’s key construction markets for education, health, offices and leisure remained good, although inflation was causing affordability concerns at the moment.