BAM Contractors, Ireland’s largest public works construction company, has increased turnover and profit margin following a strong performance in 2012.
BAM, which is also the country’s largest public works construction company, has announced turnover of €234mn for 2012 with profit before tax of €5.9mn.
BAM’s Financial Accounts for 2012 also shows that the company has a robust balance sheet with healthy cash balances and no bank debt.
Commenting on the results, Theo Cullinane, chief executive said: “In 2012 we bucked the trend by increasing year on year turnover in a very difficult environment for the construction industry. Over the past two years, we have managed to halt declining revenues and we are now on the upward curve again in terms of revenue and profit margin. The outlook for the 2013 financial year is extremely positive for BAM and we are confident that we will continue to improve our position in the Irish and international markets. During 2013 a number of significant projects have been secured such as the N7/N11Newlands Cross and Arklow to Rathnew PPP Road Scheme, so we remain on target for a significant increase in revenue next year.”
BAM secured a mix of public and private projects in 2012 and the company continues to deliver major social and infrastructural projects that support the development of the Irish economy. The company was awarded and commenced works for the construction of eight schools under a PPP Schools Bundle contract in 2012. Other projects underway during 2012 included the Tralee Bypass, Kerry; Sutherland School of Law in UCD; Ballymore Water Treatment Plant for Dublin City Council; and together with sister company Wayss & Freytag, the Corrib Gas 4.9km tunnel under Sruwaddacon Bay in north Mayo for Shell Ireland.
Major projects completed during the year included the Dell Headquarters, City Gate, Mahon Point, Cork; the ‘Project Edge’ Data Centre, Dublin, for an international search engine company; Communications Workers Union HQ, Dublin; and Cill Ronain Harbour Development on the Aran Islands, which was voted Engineering Project of the Year at Engineers Ireland 2012 Excellence Awards.
Significant international works, in partnership with BAM sister companies, included the New Port of Aqaba in Jordan; a new stadium and hotel development at Al Ain (UAE); the Coleraine to Derry Track Renewal in Northern Ireland; and in Scotland the 32.2MW Calliachar wind farm, the Kildermorie Hydroelectric Scheme and the Borders Rail projects.
Theo Cullinane said: “We have a very strong balance sheet with large cash reserves approaching €100 million and this financial strength combined with our expertise and experienced workforce, leaves us well positioned to pick up large-scale projects over the next few years.
“The establishment by the Irish Government of a €6.4bn Ireland Strategic Investment Fund is a positive move in the right direction and should present opportunities for us to secure more infrastructural projects.”
Established in 1958, BAM Contractors (formerly known as Ascon) is Ireland’s largest public works construction company, employing 2,000 directly and indirectly. Its principal activities are building contracting and civil engineering in the public, private and PPP sectors. Other activities include facilities management, property development and rail infrastructure.