In the Netherlands, BAM sold 890 homes compared to 515 in the same period last year. In the United Kingdom, the builder was awarded a ‘major’ contract to build sustainable film and television studios for Sky Studios Elstree. In Ireland, where the company is also active, the results of the coronavirus outbreak were held back by restrictions there until May. In Germany and Belgium, the performance in construction and real estate was not satisfactory, but in the infrastructure branch it was.
Operating profit, adjusted for taxes, interest and depreciation, was slightly higher than the 41.7 million euros in the same period last year. At the end of March, the builder had 14.1 billion euros worth of orders on the shelf, compared to 12.7 billion last year. BAM says the numbers provide confidence for the rest of the year.
“Leak at the top?”
This is what DFT reporter Yteke de Jong thinks:
“BAM is still in the middle of the radical restructuring process that was started under the new CEO Ruud Joosten. Although the housing market was doing well, there are still loss-making activities abroad. For example, the performance in Germany and Belgium is ‘unsatisfactory’. It is still difficult to say whether the leak is at the top. BAM indicates competition in the Dutch market is fierce, while the construction group wants to focus on this. That can mean that it can be difficult to easily increase profits. ”
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For the loss-making branch BAM International, which the company previously announced to divest, the builder recorded a loss adjusted for tax, interest and depreciation of almost 13 million euros. This was due to delays in the completion of two projects in the Middle East. The divestment of the part must be completed by the end of the year.
BAM also says it has completed the cost-saving program that started in September last year. In addition, BAM took over a player in the field of timber construction and facades for knowledge about sustainability and industrialized construction activities. According to the builder, this is necessary due to the growing demand for affordable and CO2-neutral homes.
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