BAM Ireland looks to the future following strengthening profits in 2016
23rd November 2017
BAM Ireland had another year of strong turnover with profit on ordinary activities of €23m and contributions from exceptional items of €18m in 2016.
In 2016, BAM commenced the enabling work on the New National Children’s Hospital and were named as Main Contractor for the main building work on what will be the largest healthcare infrastructure project in the history of the State.
BAM’s turnover for the year was €361m. The company’s financial accounts show that BAM has a robust balance sheet with healthy cash balances and no bank debt.
Commenting on the results, Theo Cullinane, BAM Ireland Chief Executive said: “I am very pleased to report that 2016 was another good year for BAM Ireland, which is reflected in our end of year results. Thanks to a high level of turnover with a reasonable return, along with the continued commitment of our staff we are well positioned to continue our progress in what is an improving economy. Our secured turnover for 2017 is nearing €500m.”
“One of our highlights of 2016 was breaking ground on the 380 inpatient room National Children’s Hospital. Once completed the seven storey hospital will provide 6,150 rooms, 18 theatres, four acres of outdoor gardens and external space. BAM Ireland is delighted to be working with the National Paediatric Hospital Board to deliver one of the most significant and ambitious healthcare projects undertaken in Ireland.”
- Commenced enabling work on the New National Children’s Hospital.
- Awarded the contract for the construction of the N25 New Ross Bypass PPP.
- Selected as preferred contractor for the Bolands Quay development.
- Successfully completed Schools Bundle 4 PPP projects.
- Launched BAM’s 2016-2020 strategic programme ‘Building the present, creating the future’.
BAM Ireland – financial summary 2016
- Turnover – €361m
- Profit on ordinary activities – €23m
- Profit on exceptional items – €18m
- Cash balance – €120m
- Turnover (forecast for 2017) – €500m
BAM Ireland completed a number of high profile projects in 2016. Schools Bundle 4 PPP projects were successfully completed, delivering four post-primary schools in counties Louth, Clare, Tipperary and Cork. The Mercer Institute for Successful Ageing at St James’s Hospital was completed in March 2016. The Institute was designed by BAM as a centre of excellence to treat in excess of 16,000 patients annually aged over 65 and was named ‘Best Health Building’ at the 2017 RIAI Architectural Awards.
The company continued its focus on projects in the Private Sector because of the ongoing difficulties with the Government form of contract. The Microsoft project in Sandyford was progressing well as was the Capitol Cinema project for JCD. One Molesworth Street for Green Property got underway with its deep basement on its very restricted site and is now nearing completion. BAM also commenced detailed discussions with O’Callaghan Properties for the construction of Navigation Square, a very large office building in Cork which has since commenced on site.
In addition to these significant projects, 2016 was a good year for BAM Ireland in terms of new business with the firm being selected as Main Contractor for the Bolands Quay development in Dublin’s South Docklands. This landmark development will provide 37,000 square metres of office, residential, retail and cultural space across three buildings right in the heart of the capital.
On Public Private Partnership projects, Theo Cullinane said “We continue our commitment to our PPP business. We now have 6 PPP’s under management, 1 PPP about to commence its facility management phase and 2 major PPP motorway schemes under construction.”
Last year saw the launch of BAM’s 2016-2020 strategic plan ‘Building the present, creating the future’. The plan lays out BAM’s strategic agenda to be recognised as one of Europe’s most sustainable and innovative construction businesses by 2020 by embracing the four principles of; open collaboration, predictable performance, proactive ownership and scalable learning.
Speaking about BAM’s outlook for the future, Theo Cullinane said: “In 2016, Royal BAM Group announced its intentions to become one of the most innovative and environmentally responsible construction firms by 2020. An important aspect of this strategy is positioning ourselves as a global leader in the digitalisation of the construction industry. Our commitment to achieving this goal can be seen in our trailblazing use of the latest technology. BAM is the first organisation in Ireland to achieve the international industry standard (PAS 1192-2) kitemark accreditation from BSI for the use of Building Information Modelling and Management (BIM) for design and construction projects.”
“Our consistent dedication to excellence and innovation has been reflected in the international recognition that BAM received in 2016. Our Schools Bundle 3 PPP project, now in the Facilities Management period was awarded silver in the Best Completed Project category of the international 2016 Partnership Awards – the most prestigious event in the global PPP calendar. BAM has also been named on the Climate ‘A’ list by CDP the international not-for-profit organisation that drives sustainable economies. This places BAM in the top 9% of companies globally in the fight against climate change. We are proud of this achievement and are determined to build on our success in 2017 and in years to come.”