Irish and international projects boost builder BAM’s profits by 50%

Profits at building and engineering company BAM grew by almost 50 per cent to €5.9 million last year, the latest figures show.

BAM Contractors, the Irish division of the Dutch-based multinational, had revenues last year of €234 million, 2.7 per cent more than the €228 million it recorded in 2011.

Pre-tax profit grew by 47.5 per cent to €5.9 million from €4 million the previous year, partly on the back of improved margins, which increased to 2.5 per cent from 1.75 per cent.

The business ended the year with €95 million in cash, an improvement of about 40 per cent on 12 months earlier, when it had €68 million on its balance sheet.

'Upward curve'

Chief executive Theo Cullinane said the company had managed to buck the industry trend during 2012.

“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,” he said.

“The outlook for the 2013 financial year is extremely positive for BAM and we are confident we will continue to improve our position in the Irish and international markets.”

Earlier this year, BAM announced that the National Roads Authority had awarded it the €282 million contract to design and build major new elements of the N7 and N11 roads.

The project is the last piece of a jigsaw that will allow motorists to drive from Cork to Belfast without meeting a traffic light. It was the largest public-private partnership awarded this year.

Eight schools

In a statement the company said that other highlights of the year on the domestic front were the commencement of eight schools for the Department of Education under another public-private deal.

It also completed the City Gate, Mahon Point, complex in Cork and the Cill Rónáin harbour redevelopment on the Aran Islands. In partnership with engineering group Wayss & Freytag, it is working on the tunnel beneath Sruwaddacon Bay in Co Mayo that will ultimately bring gas ashore from the Corrib field.

Further afield, it is involved in infrastructure projects in Germany and Jordan and earlier this year completed building the Hazza Bin Zayed stadium at Al Ain in Abu Dhabi. BAM is headquartered in Kill, Co Kildare.