{"id":520055,"date":"2025-05-08T12:47:35","date_gmt":"2025-05-08T11:47:35","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=520055"},"modified":"2025-05-08T12:47:35","modified_gmt":"2025-05-08T11:47:35","slug":"significant-improvement-in-uk-construction-drives-royal-bam-performance","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/financial\/significant-improvement-in-uk-construction-drives-royal-bam-performance-08-05-2025\/","title":{"rendered":"\u2018Significant improvement\u2019 in UK construction drives Royal Bam performance"},"content":{"rendered":"

Bam\u2019s parent company has enjoyed a profit boost in the first quarter (Q1) of the year, helped by a \u201csignificant improvement\u201d in the performance of its UK construction arm.<\/span><\/p>\n

In a trading update this morning (8 May), Netherlands-based<\/span> Royal Bam<\/span><\/a> said Bam Construct was one of the \u201cmain drivers\u201d for a Q1 uptick in its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).<\/span><\/p>\n

\u201cThe performance of Construct UK improved significantly, while civil engineering [in the] UK and Ireland continued to perform well,\u201d the firm said in a trading update published on Thursday (8 May).<\/span><\/p>\n

\u201cWe had a solid start of the year,\u201d Royal Bam Group chief executive Ruud Joosten said.\u00a0<\/span><\/p>\n

\u201c[The] main driver for the higher adjusted EBITDA was the performance of Construction UK and the performance of the construction and property activities in the Netherlands.\u201d<\/span><\/p>\n

Its major UK wins in the quarter included a<\/span> \u00a3100m project to overhaul a skyscraper in London<\/span><\/a> for British Land, a \u00a345.4m job to build ferry infrastructure in Shetland, and work to revamp Cardinal Newman Catholic School in Coventry.<\/span><\/p>\n

Construction News <\/span><\/i>approached Bam Construct for specific turnover and pre-tax figures for the first quarter of 2025.<\/span><\/p>\n

Its parent firm\u2019s latest announcement followed a tough 2024 for Bam Construct, with the latter reporting<\/span> a loss of \u20ac48.3m (\u00a340.3m)<\/span><\/a> EBITDA.<\/span><\/p>\n

It blamed \u201cproject delays and supply chain issues\u201d for the loss, as well as<\/span> struggles on its job at the Co-op Live Arena in Manchester<\/span><\/a>. That project is now at least \u00a385m over budget.<\/span><\/p>\n

Royal Bam also reported an increased order book of \u20ac13.3bn (\u00a311.3bn), up from \u20ac13bn at the end of 2024, \u201cwith [a] continued focus on quality above volume\u201d.<\/span><\/p>\n

Looking ahead, Joosten said he expects demand in Royal Bam\u2019s markets to \u201cremain robust\u201d, despite uncertainty around interest rates and the geopolitical landscape.<\/span><\/p>\n

\u201cWe see attractive market opportunities driven by demand for decarbonisation, infrastructure, and sustainable and affordable housing, areas where we have demonstrated market-leading capabilities,\u201d he added.<\/span><\/p>\n

Later this month, Royal Bam will also initiate a \u20ac50m share-buyback programme, as announced in February.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Bam\u2019s parent company has enjoyed a profit boost in the first quarter (Q1) of the year, helped by a \u201csignificant improvement\u201d in the performance of its UK construction arm. In a trading update this morning (8 May), Netherlands-based Royal Bam said Bam Construct was one of the \u201cmain drivers\u201d for a Q1 uptick in its …<\/p>\n","protected":false},"author":90643,"featured_media":453988,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false},"categories":[552,528],"tags":[],"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n