BAM’s half-year results show positives in a challenging market
By Mike Hayes21 August 2023
Royal BAM Group has announced its half-year results for 2023, with an adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of €119 million, reflecting a margin of 4.0%.
The Dutch contractor also reported a “good level” for its cash position and order backlog, with the order book currently standing at €9.5 billion.
The company said that, although “market conditions remain challenging”, it expects to deliver an adjusted EBITDA margin higher than 4% for the full year.
The company’s liquidity position decreased to €0.7 billion, which BAM said reflects the normalisation of trade working capital.
Ruud Joosten, CEO of Royal BAM Group, said conditions in the company’s markets remained challenging, but “In the Netherlands, civil engineering continued the positive trend of recent quarters and made a substantial contribution to the Group’s results. Our Dutch residential activities reported a satisfactory contribution.”
Joosten added, “The lower result of the division Netherlands was mainly due to design issues and cost overruns at the four non-residential projects in Denmark, which will be completed in the coming quarters.
“The division United Kingdom and Ireland performed well, with a higher contribution of Ventures and Ireland.
“There were positive results from the activities in Belgium…Since year-end 2022, our capital ratio further improved by 1.1% to 22.3%.”
Regarding the company’s environmental initiatives, Joosten said, “We continue to make progress with our strategy ‘Building a sustainable tomorrow’.
“We remain focused on managed growth through selective tendering, helping our clients to achieve their goals while providing value driven, reliable and sustainable solutions for construction and vital infrastructure.
“In line with our recently introduced sustainability strategy, we are investing in electric plant and equipment and the use of biofuels to decarbonise current and future projects.”