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Bam gloomy after announcing sharp fall in profits

Royal Bam Group has pointed to the “uncertain and unfavourable market conditions” for the company’s levelling off in profits after it released its third quarter report.

The Group, parent company of Bam Nuttall, said its net profit for the first nine months of 2011 was €84M (£71.9M). This is down £38.5M on last year. Its forecast net profit for the year remained the same at £102.7M. It said its order book had reached £9.5bn by 30 September, compared with a year end order book in 2010 of £10.4bn.

Bam chief executive Nic de Vries said the results signalled a “code orange” for the company.

“Bam companies, too, have been affected by decreasing volumes, fierce competition and a sharp fall in prices,” he said.

“Partly in view of the fact that most of the markets in which Bam operates currently offer limited prospects for further growth of the Group, the decision was taken to review the strategic agenda drafted for the 2010-2012 period. The focus remains in particular on reducing the amount of invested capital, especially in the property sector. In addition, Bam is reconsidering the position of the engineering and consultancy company Tebodin.”

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