Parent company of Bam Construct and Bam Nuttall hit by raft of exceptional costs and problem jobs

BAM

Royal Bam has slumped to a 鈧�122.4m (拢90.6m) full-year loss, as a raft of excpetional costs and problems on two jobs in the UK and Germany dragged down its results.

The Dutch construction group鈥檚 UK subsidiary - which incorporates Bam Construct and Bam Nuttall - posted a 鈧�3.4m (拢2.5m) loss for the 2014 calendar year, after posting a 鈧�19.6m (拢14.5m) profit the previous year, with the loss attributed to problems on an undisclosed UK civils project.

Bam UK grew revenue 11% to 鈧�2.1bn (拢1.6bn), up from 鈧�1.9bn (拢1.4bn).

Royal Bam鈥檚 overall loss was down in part to 鈧�185m (拢137m) of exceptional costs, including 鈧�53m (拢39.2m) of restructuring costs from rolling out its cost-cutting programme, named 鈥楤ack in Shape鈥�, which started last summer and will run to the end of 2015. Royal Bam axed 650 jobs last autumn as part of the programme.

Other excpetional costs incurred last year include a 鈧�93.2m (拢69m) writedown on the value of its Dutch land bank positions and a 鈧�21m (拢15.6m) writedown on two Irish PPP toll road contracts.

Without these exceptional costs Royal Bam posted a reduced adjusted pre-tax profit of 鈧�62.2m (拢46m), down 17% from 鈧�75.2m (拢55.7m).

Royal Bam鈥檚 revenue grew 4% to 鈧�7.3bn (拢5.4bn), up from 鈧�7bn (拢5.2bn).

The group first warned investors of the problems on the two civil engineering jobs in the UK and Germany .

Topics