Significant Increase in BAM Turnover for 2013
24th September 2014
BAM Group Ireland, one of the country’s largest construction businesses, has increased year on year turnover by 31% following a strong performance domestically and abroad in 2013. BAM, which is one of Ireland’s longest established indigenous construction companies, has announced turnover of €306 million with profit before tax of €7.5 million.
BAM Group Ireland’s Financial Accounts for 2013 also shows that the company has a robust balance sheet with healthy cash balances and no bank debt.
Commenting on the results, Theo Cullinane, BAM Group Ireland Chief Executive said: “We had a strong performance in 2013 and improved and strengthened our financial position through a number of significant projects. We will continue to play a leading role in driving Ireland’s infrastructure, where we have directly invested in PPP projects such as the Schools’ Bundle 3, Newlands Cross/N11 roadworks and are Preferred Bidder for Schools Bundle 4. BAM Facilities Management (FM) is growing significantly and is now an intrinsic part of our success in this business sector
“Our strategy now is to grow revenue from private sector activity, while continuing our PPP investments. Regrettably our experience in recent years with the ‘new’ forms of contract for Public Works has proven difficult and they mitigate against a partnership approach which is essential for the successful delivery of complex construction projects. The use of internationally accepted forms of contract will alleviate this issue but that seems some way off. Public sector forms of contract have proven adversarial, which industry analysts predicted, and combined with an undesirable push to arbitration to settle accounts, it is easier to conduct business in the private sector.”
- Increased levels of turnover, with significant growth in FM
- Significant domestic and international projects in 2013
- Fit-out projects for multiple clients at CityGate, Mahon Point, Cork
- Completion of UCD Sutherland School of Law and Tralee Bypass
BAM Group Ireland – financial summary
|2013 €m||2012 €m|
|Profit before tax||7.5||5.9|
BAM continues to deliver major social and infrastructural projects that support the development of the Irish economy. Projects that progressed during the year included the Schools Bundle 3 PPP; Newland’s Cross/N11 PPP road project; Clinical Research Facility and Translational Research Facility at NUI Galway; redevelopment at Ulster Hospital; Glanbia ‘Project Purple’; National Children’s Detention Centre; and the Science Building refurbishment and extension at Sligo IT.
International works, undertaken in partnership with BAM sister companies, included the New Port of Aqaba in Jordan; a new stadium and hotel development at Al Ain (UAE); the Coleraine to Derry Track Renewal in Northern Ireland and railway works in Scotland.
BAM is about to commence a new office development at Albert Quay, Cork, which is a joint development with John Cleary Developments. This follows on from the successful delivery of the 45,000 sq metre office at CityGate Park recently with the same developer.
Discussing the future industry outlook, Theo Cullinane said: “While general construction activity remains challenged, there is an increase in private sector investment particularly in the office sector, driven by FDI demand. Public capital spending needs to rise to a sustainable figure, as a percentage of GNP, in order to bring stability to the industry. We have a good order book and the PPP stimulus package of €2.2bn now approaching construction stage offers a positive outlook and we are confident of picking up a significant number of related projects.
“We managed to retain a high proportion of our core staff over the past few years, some of whom were redeployed on our international sites, where they’ve been gaining valuable experience on some fantastic projects. We have a rich talent pool of specialist expertise which we can draw upon as we continue to increase our foothold domestically and internationally.”