BAM Construct UK reported an improved performance in 2016, with profit, turnover and cash all up on the previous year. The company deposited its 2016 report and accounts at Companies House this week.
Turnover rose by 19.5% to £1,072 million (2015: £897.5 million). Profit from underlying operational activities was £14.2 million (2015: £13.0 million), and cash rose to £117 million from £79 million. The order book was £1,653 million (2015: £1,723 million).
Profit before tax of £26.2 million includes a one-off exceptional gain of £12 million from changes to two defined benefit pension schemes.
Graham Cash, Chief Executive, said that BAM had actively sought clients using a two stage tender procurement process, commenting: ‘We have a full design practice, and a services engineering division, we are able to assist a number of clients to achieve realistic cost plans and manage budget constraints through value engineering and creating better design options.
He added: ‘We have been tendering ever more selectively to ensure we focus on those schemes which maximise our differentiating capabilities.
‘Our aim is to secure long-term strategic alliances with our clients. In 2016, 55% of our new work secured was repeat business with existing clients.’
In 2016 BAM was selected to participate on the Procure 22 national health framework for England. It continued its participation on the Education Funding Agency’s national and regional contractors’ frameworks and major regional frameworks such as YORbuild and the Southern Construction Framework.
Mr Cash said the company’s approach is aligned with Royal BAM Group’s strategy, ‘Building the present, creating the future’.
In 2017 and beyond, said Mr Cash: ‘The key components are to execute projects effectively and efficiently. This includes being selective about projects where BAM can perform at its best and deliver a winning performance and where we can either compete effectively on scale or by offering differentiating capabilities.
‘The second facet is to develop BAM’s complementary and value-added services to projects where these can create synergy and strengthen BAM’s attractiveness as a project partner.
‘The final limb of the strategy involves BAM being at the forefront of new digital construction and data management techniques. The development of intelligent data will have a profound effect on the built environment and we will innovate and assist clients to use such data to make the most of their buildings.’