Good start for BAM in 2007

31 May 2007 12:32
  • Net result for the first quarter of 2007: €56.7 million
  • Excellent results property development activities
  • German operations develop as expected
  • Order book at new record level: €14.0 billion
  • Outlook for 2007 raised: net profit of at least €210 million
  • Negotiations about sale of US operating company

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Course of business during the first quarter of 2007

Royal BAM Group has started the year well in all segments. Compared with last year's first quarter figures, turnover rose by approximately 6% to €1.85 billion (2006: €1.75 billion). The organic increase in turnover was around 3%, taking into account the proportionally lower turnover contribution by AM during the first quarter of 2006. Property developer AM has been included in the consolidation since 1 February 2006.

The net result rose to €56.7 million (2006: €31.4 million), which was caused in part by considerably lower tax charges and AM's proportionally higher result contribution during the first quarter of 2007. One reason for the lower taxes was a one-off tax gain in the United Kingdom, stemming from sales in 2006 of commercial property developed by BAM. Other factors causing the lower tax burden included improved results in Germany and the lower corporate tax rate in the Netherlands.

From the 2007 financial year onward, Royal BAM Group will report separately on its construction activities and on its property activities. BAM hopes this will provide clearer information about the Group's operational and financial situation. The return and risk profiles for construction and for property are different. The basic assumption remains that both activities are closely-linked, often also within one single operating company. With effect from this financial year, the Group's segments have become the following sectors: Construction, Property, Civil engineering, Public private partnerships, Mechanical and electrical contracting and Consultancy and engineering.