In line with market conditions, margins for construction and M&E services in both the Netherlands and UK were lower and revenue in the UK fell by nearly 11% in comparison with 2010.
In civil engineering, there were higher revenues but lower margins in the Netherlands, the UK and Belgium. In UK civil engineering, there was a sharp rise in revenues in 2011 due to work starting on several large contracts awarded in 2010. However, with margins under competitive pressure, the result in 2011 was lower. Following the acquisition of a number of large infrastructure projects in London, the size of BAM Nuttall鈥檚 order book at the end of 2011 was in line with year-end 2010.
鈥淚n 2011, Royal BAM Group achieved robust operating results and made good strategic progress, despite difficult conditions in almost all of its markets,鈥� said Royal BAM Group chairman Nico de Vries. 鈥淭he net result of 鈧�126 million met the forecast made a year ago. In line with our strategy, we started scaling down our property portfolio. We completed the first tranche of transfers of PPP projects and we sold our stake in the dredging company Van Oord. We also decided to review the position of Tebodin within the group, which culminated in the recently announced sale.鈥�
He added that European economies remain weak and the outlook is uncertain. 鈥淗owever, BAM is confident about its prospects based on a sharp focus on its core business activities, its scope to promote synergies across the group, its strengthened financial position and its prospects for growth in new markets.鈥�
Construction and M&E services brought in a profit of 鈧�76.2m on turnover of 鈧�3.389bn compared with 鈧�102m and 鈧�3.459bn for 2010. Revenues were up in the Netherlands and Germany and down in the United Kingdom and Belgium. Volumes and pricing on new business remained under pressure in all markets. Year-end order books in the Netherlands and UK were lower, due mainly to a selective contracting policy.
In civil engineering, the profit was 鈧�91.9m on turnover of 鈧�3,834bn, compared with 鈧�102m and 鈧�3.659bn for 2010. There were higher revenues but lower margins in the Netherlands, the UK and Belgium. There were also positive results in Ireland and Germany on lower revenues. The company has identified growth opportunities for BAM International in global niche markets and said that large multidisciplinary projects offer the best opportunities.
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