BAM Construction suffers £40m loss after Co-op Live setback

Royal BAM did not quantify the loss on the job as it blamed project delays and supply chain issues for the poor performance of the BAM Construction UK business.

In a challenging year for the building business revenue also slipped by 13% to £755m.

In stark contrast, the BAM Nuttall civils business continued to thrive, driven by HS2 and energy transition work.

Civil engineering reported a 24% uplift in EBITDA to £80m on turnover ahead 15% to £1.312bn for 2024.

This translates into a strong trading margin of 6% for BAM Nuttall.

The overall performance of BAM’s operations in the UK and Ireland remains solid, with significant gains reported over the previous year.

The company’s order book has skyrocketed by 58%, now standing at around £6bn across the regions.

Despite the setback at BAM Construction, Ruud Joosten, CEO of Royal BAM Group, said he remained optimistic about growth prospects for the UK market.

Joosten said: “Energy remains a focus of the UK Government, which has recently issued the Clean Power Action plan to speed up planning decisions to help the energy chain gear up for delivery.

“Furthermore, negotiations have begun with the shortlisted bidders for the Small Modular Reactor programme and BAM participates in this process with Rolls Royce.

“The New Hospital Programme in the UK will be put on a more sustainable and deliverable footing.

“In the first half of 2025, further announcements from the UK Government are expected, including the long-awaited ten-year Infrastructure Plan and the outcomes of the Strategic Defence Review and the Spending Review, which will determine capital spending for the next five years.”