Profit at both Bam Nuttall and Bam Construct jumped as the remaining pandemic-related restrictions were eased.
In financial results posted by its Dutch parent company, Bam Royal, for the first six months of the year, Bam Nuttall – the group’s UK engineering arm – scored a “solid performance, supported by a high activity level”.
Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) at Bam Nuttall was up from €15.1m (£12.7m) to €19.4m (£16.4m) in the first half of the year, while turnover increased slightly to €609m (£513.8m) from €605m (£510.4m).
Profit was also up at the firm’s construction and property division, Bam Construct, despite it being “impacted by supply-chain issues on some larger contracts”.
Adjusted Ebitda came in at €22m (£18.6m), compared with €19.2m (£16.2m) for the previous year. Turnover, meanwhile, crept up to €512m (£431.6m) from €511m (£430.7m).
The results build on a positive display at this stage last year, when the contractor boosted its profit and turnover to levels above both the COVID-affected results seen in the same period of 2020 and the first half of 2019.
Royal Bam chief executive Ruud Joosten said the business, which has bases in the UK, Ireland and the Netherlands, penned a “solid performance” over the last six months. But he warned the business climate and consumer confidence have “declined in recent months”.
“We continue to face industrywide pressure in the supply chain, cost inflation, and high competition to attract and retain employees,” he added, saying that some of the headwinds had been softened through sourcing arrangements, pricing and contract terms.
“We are well-positioned by our multi-year backlog and we see ample market opportunities, supported by demand for decarbonisation, critical infrastructure and sustainable buildings, where we have proven market-leading capabilities,” he said.
Bam’s UK operations include its new Ventures business, which encapsulates its geotechnical engineering firm, Ritchies, site solutions, EV charging solutions and property UK. Their adjusted Ebitda dropped to €6m (£5.1m) from €6.5m (£5.5m), although revenue was up to €108m (£91m) from €96m (£80.9m).
Bam Royal will also buy back up to 5.3m shares, which will begin on 19 August. Share buybacks are generally indicators of business resilience as companies will use their cash reserves to regain shares.
The contractor has undergone a shakeup in recent years, splitting itself into two divisions, based on geography – one in the Netherlands, and the other in UK and Ireland. Previously, they had depended on the sectors in which they operated, and were divided into construction and property, and civil engineering.