BAM Nuttall credits strong foundation of collaboration for delivering solid performance in 2020
Camberley, 14 June 2021 - In 2020, BAM Nuttall’s turnover exceeded 2019 levels, £844m (2019: £770m), despite challenging market conditions delivering a profit before tax of £11.6m (2019: £15.3m), resulting in a margin of 1.4% (2019: 2.0%).
BAM Nuttall continued to win sustainable work, closing the year with a record £3.4bn order book. Repeat business and high levels of two-stage negotiated contracts, achieved throughout the strategic period 2015-2020, underpin a positive outlook.
Adrian Savory, Chief Executive: ‘Our strong performance in 2020 was made possible by the resilience and solid collaborative foundation built by our people, suppliers, clients and local communities. We carried on operating safely, profitably and sustainably thanks to our focus on strong client and industry relationships. Our continued success winning sustainable work closed the year with a record £3.4bn order book.’
Safety and wellbeing
We continue to aspire to improving the safety, health and wellbeing of everyone who works with BAM Nuttall and who may be impacted by our activities. Our focus on continuously improving safety performance remains our highest priority. Our accident rate in 2020 is low, and we continue to invest in upskilling our people and pursuing innovative and digital ways of working to improve this further.
How our industry and people responded at the outset, and throughout, the pandemic is indicative of the increasingly important role of engineers in society. We supported multiple sectors keeping people moving - including key workers operating hospitals, health and emergency services, and keeping essential products on shelves.
The solutions developed across sites to respond to challenges of the pandemic enhanced our pioneering research programme with our sister company BAM Construct UK and Timewise, piloting flexible working for the construction industry, particularly for people on sites. The results and insights have shaped our new Flexible Working approach and will help modernise our industry.
In 2020 our focus intensified, and investment was increased, to support people’s health and wellbeing, increase diversity and improve inclusion. The correlation between wellbeing and belonging being an important factor for involving and connecting regularly with as many colleagues as possible.
Diversity and inclusion
BAM Nuttall formed a Centre of Expertise (CoE) for Social Impact and Inclusion, an Inclusion Steering Group, and launched four @BAM People Networks. The CoE supports our projects and colleagues, communities and customers to work together with consistency, driving change and measuring impacts of that change, including the adoption of the Social Value Portal.
We support local communities, continuing to offer employment opportunities, such as Mencap work experience placements on our transport and flood alleviation projects in Leeds. In 2020 we committed to the Chancellor’s Kickstart Scheme, for 6-month work placements for young adults, and to the 10,000 Black Interns initiative. We look forward to welcoming them into our business in 2021.
We’ve strengthened our opportunities for early careers talent, bringing together apprentices across BAM Nuttall and BAM Construct UK for the first time as a combined college cohort after listening to the businesses’ needs. More than 50 new apprentices attend Leeds College of Building each year, joining a total cohort of over 300 apprentices employed nationally by BAM. This merger is enhancing inclusivity and collaboration across our organisations.
In 2020 we almost reached 1:4 gender balance across our business, by focusing on career and succession planning, and recruitment. And our efforts to close our gender pay gap are achieving results, including 6.6% improvement in the mean average to 24.8%.
Exceeding sustainability targets and driving towards net zero carbon
In 2019 the Royal BAM Group committed to Science Based Target (SBT), and to halving emissions intensity by 2030 for Scope 1 and 2 against a 2015 baseline. Our direct carbon emissions from purchased fuels, energy and business travel in company cars reduced by 33% on 2019. Some reductions are a direct result of the pandemic, however it is clear BAM Nuttall would have exceeded targets comfortably in normal circumstances.
We use our mature energy and carbon measurement systems to focus on reducing our use of liquid fuel, responsible for two-thirds of our direct carbon emissions. We played an active role in responding to calls for action in 2020, from Construction Leadership Council (CLC), CECA’s CO2structZero campaign, and the Institution of Civil Engineering’s (ICE) #shapezero campaign, for increased industry collaboration to accelerate carbon reduction.
We’re trialling alternative plant-based fuel and other low carbon construction materials, such as cement-free concrete, to reduce carbon emissions across our project portfolio.
BAM Nuttall is a key partner in the UK Small Modular Reactors programme, led by Rolls Royce, focused on delivering low-cost, low carbon power to sustain future demand and economic growth.
We’re supporting clients to achieve more ambitious targets, including net zero carbon by 2030 for specific projects. BAM Nuttall’s performance in 2020 has contributed to Royal BAM Group maintaining its ‘A’ listing on the CDP leadership index – a key part of the Group’s sustainability strategy.
In April 2020, BAM finished constructing a new 74-metre wharf at Rothera, the largest British Antarctic Survey (BAS) research station. One of our main aims, underpinned by a sustainability strategy, was to minimise use of fossil fuels through low-carbon and renewable energy designs. The team recycled materials, including steel from the old wharf and existing rock fill, helping to decrease the amount of embedded carbon.
Modern methods of construction and lower carbon materials are areas where BAM has significant experience. We continue to leverage our deep understanding of construction processes, gained through self-delivery, and technological innovations such as BIM, robotics, 3D printing, virtual and augmented reality and modular/ offsite construction. These further improve our sustainability performance, risk management and meeting clients’ programme and cost requirements.
In December 2020, Farringdon was the first central London project team to complete construction, on behalf of infrastructure manager, Transport for London. It is also the first and only Elizabeth line station to achieve the BREEAM excellent accreditation in its post-construction review. It achieved this for its dedication to the environment and social sustainability through the design and construction stages.
Adrian Savory, Chief Executive: ‘We thank all our people and their families for their outstanding commitment and contribution which achieved this performance in 2020. And we thank our colleagues working alongside us on projects, from our clients’ and JV partners' and suppliers’ businesses, and across our industry for their mutual support. This year has proved to us all that, together, we can do things so differently when we need to – and do them more safely, sustainably, healthily and inclusively for all.’
BAM Nuttall’s full Annual Report and Accounts 2020 is available at Companies House and published on www.bamnuttall.co.uk.
About BAM Nuttall
BAM Nuttall, along with BAM Construct UK and BAM PPP in the UK, is part of Royal BAM Group. BAM delivers exceptional engineering, design, construction, property management, and investment services. The Group turnover is £7 billion annually, listed on Euronext, Amsterdam.
BAM Nuttall, employing approx. 3,000 people, has a worldwide reputation for collaborating with clients, creating sustainable environments that enhance people's lives. Our projects span the UK, and we’re involved in overseas partnerships including Africa, Australia and Antarctica. BAM people capitalise their knowledge, across multiple sectors including rail, road, marine, tunnelling, highways, energy and water utilities and ground engineering - using state-of-the-art resources and digital technologies to provide innovative solutions.
Further information: Abigail Rowland, Head of Communications, firstname.lastname@example.org.