Contractor Bam Nuttall has announced a rise in pre-tax profit and margins for the year ending 31 December 2013.
The contractor’s pre-tax profit rose to £18.1M for 2012, up from £14.8M the year before.
The firm’s operating margins grew to 1.5% from 1.2%. Turnover was down however, from £809M to £730M.
“The profitability of the UK companies improved in 2012 primarily as a result of careful market positioning, project selectivity and improved risk management and project execution,” said Bam Nuttal parent firm Royal Bam group board member Martin Rogers.
“Although their turnover in 2012 was lower than the previous year, combined revenue of £1.7bn is evidence that the Bam brand is a significant force in the UK construction sector.”
The positive performance comes after Bam Nuttall chief executive Steve Fox last year told NCE that the UK market would remain tough.
“The prospects for the next three years are going to remain very difficult,” he said. “It’s difficult to see that there will be any substantial changes in margin over that period.” At that time Bam’s profit margins had dropped from 2.3% for the year ending 31 December 2010 to 1.7% for 2011.
Sister firm Bam Construct UK announced a pre-tax profit of £13.9M, up from 11.5M in 2011. Its operating margin grew to 1.5% in 2012 up from 1.2% in 2011. The firm’s turnover fell from £945.9M in 2011 to £917.2M in 2012.