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Bam H1 results: Weaker pound takes £56m off revenue but profit rises

Bam has reported a €65m (£56m) hit in group revenue from the weaker pound but saw profit rise in the first half of the year.

Royal Bam Group, Bam UK’s parent company, said the only impact of Brexit had been “the translation of the weaker pound”, according to CEO Robin van Wingerden.

“Our UK order book is solid and we will maintain our tender discipline. We are monitoring new order intake closely and will adjust our operations if required,” he said.

The firm said no orders had been cancelled following the referendum, and that its UK arm had won “several new orders” since 23 June.

Its combined UK order book at 30 June 2016 was €2.6bn (£2.5bn) while it also said that “virtually all revenue” for 2016 was secured.

The firm’s UK division reported revenue of €1.06bn (£0.92bn) for the six months to 30 June 2016, down slightly from €1.09bn (£0.93bn) reported in the same period a year earlier.

The company also said it had seen “small losses” on some projects in their closing phases in the UK.

However, profit before tax in the UK nearly quadrupled to hit €18.2m (£15.7m), up from €3.9m (£3.4m) a year earlier.

Contract wins in the UK in recent months include a place on the £4bn ProCure 22 health framework.

Royal Bam saw group revenue fall by 3 per cent to hit €3.4bn (£2.9bn), with “over half” of the reduction caused by the conversion impact of the weaker pound.

It also reported a €0.3bn (£0.26bn) hit in its order book due to the falls in sterling, on top of a €0.2bn (£0.17bn) decline due to a project cancellation in Belgium, leaving its order book at €0.9bn (£0.77bn) as of 30 June 2016.

In its most recent full-year results, Bam’s UK construction business saw revenue rise by more than 10 per cent, climbing from €2.1bn (£1.6bn) in 2014 to €2.3bn (£1.8bn) in 2015.

It also reported a pre-tax profit of €25.2m (£19.6m) in 2015 having recorded a €3.4m (£2.6m) loss in 2014.

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