An improved performance from Bam’s UK construction arm has helped Dutch parent Royal Bam turn around a £95m pre-tax loss.
The UK construction business made a profit of €25.2m (£19.6m) in 2015 having recorded a €3.4m (£2.6m) loss in 2014. Revenue in the UK was up by over 10 per cent, climbing from €2.1bn (£1.6bn) in 2014 to €2.3bn (£1.8bn).
The UK is now the most profitable of all Bam’s regional divisions and second only to the Netherlands in revenue.
Its turnaround helped the group make a pre-tax profit of €13.3m (£10.4m), having lost €122.4m (£95.3m) in 2014.
Presenting the results, Royal Bam chief executive Rob van Wingerden said he expected the current year’s profit to be higher still, but warned of a €20m (£15.6m) restructuring charge relating mainly to the Dutch business.
In 2015, the group incurred €38.6m (£30m) of restructuring costs, while 2014’s figure was €68.8m (£53.6m).
Mr van Wingerden also launched a five-year strategy to improve profitability for the group by 2020.
He said: “This means a more disciplined focus on market segments and projects where we can use either scale or expertise as critical success factor.
“Secondly, we will shape our business portfolio towards ‘doing better things’ by rationalising our propositions and developing new solutions for customers.
“Thirdly, we will invest in digitalisation to be an industry leader in how we build and what we build – ‘doing new things’.”
He added that the group had set a target of “double-digit return on capital employed” by the end of the five-year cycle.