Royal Bam, the Dutch parent company of Bam Construct and Bam Nuttall, today issued a warning saying it expects group profits to be 70 per cent lower than previously guided.
It was expecting to make a profit of €100 million but has now said that it is likely to make €30 million. It releases its results for the 2009 financial year on 4 March.
The sharp drop is caused entirely by write downs at its Dutch house building division, which was also responsible for similar charges last year.
It is unclear whether there will be any follow on effects for the UK business.
The last figures to December 2008 show that the UK division made pre-tax profits of £81 million on turnover of £1.7 billion.
Bam bosses said of the housing division: “It has adjusted its ambitions in accordance with current market conditions.”