|
contents | business | |||||||||
| Royal BAM reports first quarter results Nico de Vries, Chairman of the Executive Board of Royal BAM Group said in a statement that 'compared to Q1 2012, total revenue in Q1 2013 was down by 4%. This fall was due mainly to the longer winter period reducing working days in Civil engineering and ongoing difficult conditions in Construction and M&E services and Property in the Netherlands. The total result before tax was up slightly to €5.2 million, a pre-tax margin of 0.4%.' At Construction and M&E services, revenue fell by €25 million (-4%). Most of this was due to lower activity in the Netherlands, partly offset by Belgium and the United Kingdom. Conditions in Dutch construction markets remain extremely difficult with no signs yet of a recovery, especially for residential. In the tough UK construction market, BAM's operations are starting to see the benefits of earlier capacity reduction actions. The closing order book was down due to lower order intake in all countries except the United Kingdom. Revenue at Civil engineering was up by 1% in total; lower mainly in the Netherlands but higher in Germany, Ireland and BAM International. Revenue growth was held back by the harder winter conditions. In the Dutch market which is hindered by uncertainty regarding future Government spending, BAM is focusing on large project opportunities. BAM continues to see opportunities in the other home countries and the worldwide niche markets of BAM International. In Property, total revenue fell by €48 million (60%). This was due to the expected slump in the number of homes sold in Q1 2013 in the Netherlands to 265. Conditions in the Dutch residential housing and commercial property markets developed in line with the assumptions set as per Q2 2012. Total invested capital in Property at the end of March 2013 was approximately the same as at end-December 2012. At Public-Private Partnerships (PPP), revenue in Q1 2013 was €60 million. The relatively high pre-tax result of €8.6 million includes the book profits on the transfers of two projects to the joint venture with PGGM. BAM PPP reached financial close on the High Court (The Hague) in January and on the N11/N7 Irish roads project in April. Total equity investment in PPP at the end of March 2013 was in line with end-December 2012. The tender pipeline remains healthy. write your comments about the article :: © 2013 Construction News :: home page |