Bam Nuttall turnover tops £1bn

“Selective tendering” helped to nudge Bam Nuttall’s turnover over the £1bn mark for the first time.

But the firm warned that the “higher inflationary environment” had forced it to adopt a “conservative” approach for 2023.

“Our business delivered its operations safety, profitably, sustainably and predictably, despite the ongoing pandemic,” Bam Nuttall executive director Ian Parish said on the publication of the contractor’s annual results.

“Our results demonstrate a prudent growth strategy, securing sustainable revenue through selective tendering with our strategic clients,” he added.

In the year to 31 December 2021, Bam Nuttall’s revenue came in at £1.07bn, in comparison with £843.9m for the year prior. The contractor’s pre-tax profit also surged, reaching £26.2m in comparison with £11.6m for the previous year.

But increasing inflation, which has dogged the sector over the last two years, has left the industry in an “uncertain position”, Parish warned.

“COVID-19 and other macro-economic issues are having a limited, direct effect on construction, but to reflect the higher inflationary environment, we will be applying a conservative approach to 2022,” he said.

The company has secured an order book of £3.4bn for the future.

Profit at Bam Nuttall’s sister company, Bam Construct, also increased in the same period, as restrictions caused by the pandemic softened.

This allowed projects that had been put on hold to resume, as the civil engineering specialist tabled a profit of £20.4m, in comparison with £13.7m for the year prior.

Its revenue was on the up, reaching £918.6m, compared with £793.1m for the previous year.

Bam Construct executive director James Wimpenny said: “BAM Construct UK maintained its strategy of forming long-term strategic alliances with clients who share our values of collaboration and who are interested in leveraging the benefits of digital construction, and new methods such as offsite fabrication and sustainability.”

The improving climate also saw the construction arm increase its order book to £1.80bn, up from £1.47bn for the year prior.

Bam Construct warned of the “urgent” skills shortages facing the sector amid an ageing workforce and technology requiring specialist expertise.

“More diversity is needed to boost creativity and innovation, fill the skills gap and lift productivity,” the report warns.

Royal BAM, which is the parent company of both Bam Nuttall and Bam Construct, has been undergoing a restructure that will see its two divisions based on the geography of the group. Previously, they had depended on the sectors in which they operated, and were divided into construction and property, and civil engineering.

Former Kier director John Wilkinson now heads up BAM UK and Ireland, which includes the two UK-based contractors and Irish firm Bam Contractors.

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