Royal Bam Group’s’ recovery programme is making progress, despite the company’s UK operation recording a loss last year.
According to a statement to the stock market this morning, the UK arm made a €3.4m (£2.5m) loss on revenue of €2.08bn (£1.54bn) for FY 2014, compared with a €19.6m (£14.5m) profit on revenue of €1.88bn (£1.39bn) in 2013.
Despite this, the group said its ‘Back in Shape’ programme, which was launched in July last year, was on course to deliver planned cost savings of at least €100m by the end of 2015.
The programme, which will run to the end of the year, aims to improve Bam’s operational and financial performance through cost reduction, better control of projects, working capital reduction and divestment.
Germany was the only other region to report a loss – of €31.2m on revenue of €904m, compared with a €10.1m profit on revenues of €873m in 2013.
Royal Bam group chief executive Rob van Wingerden said: “The simplified new structure to make us more effective on the outside and efficient on the inside is in place.
“New and improved processes are being implemented that will result in better project control.”
He added: “There will be a restructuring charge for Back in Shape of approximately €30m in 2015.
“We expect the group adjusted result before tax for the year 2015 to be higher than the level of 2014, with a larger contribution coming from the operational sectors.”