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Bam Nuttall posts record revenue as profits continue to fall

Bam Nuttall has reported a record turnover of £809 million for 2011 - but said competitive pricing has meant a further fall in pre tax profits.

The engineering arm of the Dutch group Royal Bam said revenue increased 16.6 per cent in the year to 31 December 2011 compared with 2010, while profit before tax was down 9.5 per cent, from £15.7m to £14.3m. The 2010 figure was down from £24.6m in 2009.

Operating margin dipped from 2.2 per cent in 2010 to 1.8 per cent last year.

The company reported an “excellent” order book value at £966m, with significant contract awards from Crossrail and Olympic Legacy Company.

Chief Executive Steve Fox said: “Bam Nuttall has had another successful trading year despite the poor growth outlook for the UK economy and the bleak forecasts for the construction sector as a whole.”

Mr Fox said the financial results reinforce the company’s position as a leading UK civil engineering business. But he conceded the dip in pre-tax profit reflects “price competition within our sector”.

Mr Fox added:  “Our focus continues to be the pursuit of work with secure funding while adopting selective bidding practices, including strategic collaboration with carefully selected partners.”

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