黑洞社区

Fears of a full-scale crash in the Eurozone are depressing the UK construction market, chief executive of Bam Construct UK Graham Cash has said.

Cash said construction firms 鈥渄esperately need鈥� a resolution to the Euro crisis, as the firm reported a drop in both turnover and profit for the financial year ended 31 December 2011.

鈥淒evelopers have not got the confidence as [they fear] we鈥檝e got this dark black hole coming that鈥檚 the Euro [collapse],鈥� Cash said.

Bam Construct鈥檚 turnover fell 9% from just over 拢1bn in 2010 to 拢946m, while pre-tax profit dropped a third from 拢17.1m to 拢11.5m.

For the full financial results

But Cash said the firm would continue to target work with 鈥渂old鈥� clients developing major schemes in the tough market, including Argent and the Co-op.

Bam landed a 拢24m retail-led scheme for Argent at Kings Cross in north London in January and will complete construction of a new headquarters for the Co-op in Manchester in August 鈥� a scheme thought to be worth about 拢100m.

Bam is also planning further expansion into facilities management after poaching senior Interserve director Kath Fontana to head up its FM division.

Cash said the education sector was still 鈥渢he biggest market out there鈥� for Bam after picking up seven multi-million pound academy projects so far this year.

But he added the contractor had been frustrated by a lack of clarity on the coalition鈥檚 Priority School 黑洞社区 Programme.

Cash said a fall in profit and a fall in its operating margin from 1.6% in 2010 to 1.2% was 鈥渢he reality of the market we鈥檙e in鈥�.

He added the company had completed its downsizing for the time being, after making 100 staff redundant last autumn.

Bam Construct鈥檚 sister company 鈥� civil engineering contractor Bam Nuttall 鈥� recorded stronger results for the year ended 31 December 2011.

Major wins on Crossrail helped push Bam Nuttall鈥檚 revenue to a record 拢809m, up 17% from 拢684m in 2010.

However pre-tax profit at Bam Nuttall fell by 9% from 拢15.7m in 2010 to 拢14.3m.