BAM Contractors, Ireland’s largest public works construction company, had a strong performance in 2011, generating turnover of €228 million with profit before tax of €4 million – an increase in year-on-year profit margin.
BAM’s Financial Accounts for 2011 also shows that the company recorded an operating profit of €5.2 million for the year. The company enjoys a robust balance sheet with healthy cash balances and no bank debt.There was a mix of public and private projects secured in 2011, with projects including the Tralee N22/N69 Bypass, Srowland Water Treatment Works in Athy, City Gate Park in Mahon, Cork and the Mater Stop Diaphragm Wall and Associated Works Project for the Rail Procurement Agency.
BAM projects which commenced in 2012 include the Sutherland School of Law in UCD and the Coleraine to Derry railway track upgrade, which are both expected to be completed in 2013. Work also commenced this year on the New Port of Aqaba in Jordan, a new stadium and hotel development at Al Ain (UAE), and there are further prospective projects in Northern Ireland and Scotland. There are a number of PPP projects in the pipeline for which BAM has been selected as Preferred Bidder, involving the construction of schools and infrastructure, which are expected to reach financial close by year end. A joint venture with Heineken Ireland to develop the Beamish and Crawford site in Cork has also received planning permission.
BAM is currently launching a recruitment campaign, seeking over 100 new employees including engineers, contracts managers and quantity surveyors.
Speaking today, Theo Cullinane, Chief Executive, BAM said: “While the construction industry remained sluggish during 2011, we have maintained strong turnover and increased our profit margin year on year. This is against the backdrop of an unprecedented downturn in construction levels, a reduction in the Government’s capital investment programme and highly competitive pricing in the marketplace.
“The outlook for the 2012 financial year remains extremely challenging but we are confident that we will continue to improve our position in the market, with work commenced this year on the Sutherland School of Law in UCD and two major PPP projects set to financially close before year-end. For next year, we predict enhanced opportunities in Ireland in PPP, healthcare, educational, pharmaceutical and foreign direct investment projects and BAM is well placed to win more of this business.
“Over the past two years, we have improved our geographical spread, with a number of successes including a marine project at the New Port of Aqaba in Jordan, a new stadium and hotel development in Al Ain (UAE), and a section of the A5 Northern Route Motorway in Northern Ireland. While our primary focus will always be the Irish market, we will continue to pursue opportunities in international markets.
“Our balance sheet remains strong with good cash balances and no bank debt. With the support of Royal BAM Group and a strong financial footing, we are confident of developing opportunities and delivering successful projects for our clients.”
Established in 1958, BAM Contractors (formerly known as Ascon) is Ireland’s largest public works construction company, employing 630 staff directly in Ireland, with a further 1,400 employed indirectly. Its principal activities are building contracting and civil engineering in the public, private and PPP sectors. Other activities include rail infrastructure, facility management and property development.