BAM Construct UK publishes its report and accounts for 2020
Hemel Hempstead, 20 May 2021 - BAM Construct UK has published its report and accounts for 2020.
Revenues across the design, construction, facilities management and property development businesses reduced by 15% to £793.1m (2019: £930.5m) due to the impact of Covid. Profit before tax increased to £13.7m (2019: £9.4m).
The order book remained strong at £1,471.9m (2019: £1,402.9m). Of new work won in 2020 58% was for public sector clients and 42% was for private sector clients.
The year-end cash balance was £80.7m (2019: £85.8m) and the strong balance sheet improved, with net assets of £145.0m (2019: £135.7m).
BAM Construction delivered a profit before taxation of £8.4m (2019: loss £2.4m) on a revenue of £722.4m in 2020 (2019: £867.8m). Major construction awards in 2020 included a project to build the world’s most sustainable film studios for Sky Studios, Central House offices in London, Derby Cathedral Free School, and the Clydebank Health Centre.
In 2020 BAM FM’s turnover grew more than 10% to £65.2m (2019: £58.9m). Profit before taxation was £3.5m (2019: £3.6m). During the year BAM’s FM team was appointed to several significant new contracts for (among others) Crawley Education Authority, London Borough of Hackney, North Ayrshire Council plus Hilton Hotels, Skechers and Premier Foods.
James Wimpenny, BAM Construct UK’s Chief Executive, said: ‘The main impact of the pandemic was on our construction operations and demand was significantly reduced in the first half of 2020, with the second half returning to more normal levels of productivity. We entered 2021 as a strong business and have proven to be very resilient, supported by a healthy order book and balance sheet. We remained profitable and continued operating and winning high quality new business because of the resilience and loyalty of our people, our focus on strong client relationships, a commitment to selective tendering, and because we delivered safely, efficiently and sustainably.’
Helping our people cope with the pandemic helped us to pioneer for the sector
‘The pandemic created an opportunity to transform the way we work, Mr Wimpenny added. ‘The movement of colleagues from working in offices to working from home demonstrated our ability to work in more flexible ways. This change enhanced our pioneering research programme with Timewise on flexible working for the construction industry, particularly on sites, and accelerated our new Flexible Working Policy. Our new policy, which goes well beyond home working, is creating flexibility across all roles and will help improve overall wellbeing and mental health; tackle the long-hours culture; attract a diverse talent pool including more women, and retain more men, particularly in later life.’
The research with Timewise has now formed the basis for new industry best practice.
Exceeding sustainability targets and driving towards net zero carbon
In 2015 BAM set a target to reduce its emissions by 25% by the end of 2020. Emissions reduced by 45% compared with 2015. Some reductions are a direct result of the pandemic however it is clear we would have achieved our targets comfortably in normal circumstances.
BAM has committed to achieving net zero carbon operations by 2030, being one of the few contractors signed up to the World Green Building Council Net Zero Carbon Buildings Commitment. This will ensure the company’s buildings within its direct control reach net zero carbon in operation by 2030 and to influence its stakeholders and clients to also achieve net zero.
Paying sub-contractors faster
BAM improved its payment times to its supply chain to an average of 36 days (from 39 days). Its supply chain remains a critical factor in helping BAM meet its quality and safety and sustainability commitments. James Wimpenny added: ‘I want to express my thanks for all the hard work our many suppliers and sub-contractors do to assist our teams across the UK. They are an invaluable part of everything we do.’
Building a sustainable tomorrow
Royal BAM Group has announced a new three-year strategy: ‘Building a sustainable tomorrow’. This will deliver increased profitability and continued de-risking by focusing on markets and projects where BAM has proven competitive strengths and creating a platform for future growth.
BAM Construct UK, as a cornerstone of Royal BAM Group, will play a significant part in this strategy by broadening its lifecycle offering including net-zero buildings and expanding its industrialised construction capabilities.
BAM Construct UK’s full annual report and accounts are available through Companies House and published on www.bam.co.uk.