Dutch construction and related services group Royal 7456 BAM posted improved half-year results, despite Britain’s decision to leave the European Union.
Half-year results to June showed pre-tax profit to €45 million, up from €4 million the previous year. However, group revenue slipped back €3.4 billion, down from around €3.5 billion.
Construction and mechanical & electrical services suffered a €23.8 million loss, blamed on poor trading in Germany. But civil engineering and property helped profitability.
The company shrugged off previous fears that the recent so-called BREXIT vote – a UK referendum to leave the European Union – has had a material effect on the group’s UK division.
A weaker pound is the only impact from the vote in which the general population opted for leaving the EU. Britain is now negotiating to leave and will be entering trade talks with many countries and national political groupings. BAM reported no drop in orders as a result of the vote to leave.
“Since the vote on 23 June 2016, no orders have been cancelled and BAM has won several new orders,” a BAM statement said. “A significant percentage of the revenue for 2017 is secured in projects which are already underway.”
World Highways <%$Linker:2 Internal <?xml version="1.0" encoding="utf-16"?><dictionary /> 2 24535 0 oLinkExternal reported in December Visit World Highways Website false /categories/auctions-equipment-supply-servicing-finance/news/bam-wins-motorway-deals-in-the-hague-and-munich/ false false %> that the Dutch city of The Hague awarded a BAM joint venture with a €300 million design, construction and maintenance contract for a 4km city road. The joint venture consists of BAM Infra and BAM’s German tunnel specialist 5907 Wayss & Freytag Ingenieurbau.
The new connecting road will run between the motorway at the Ypenburg interchange, A4 and A13, and The Hague’s Central Zone of Binckhorst-Centrum-Scheveningen. Construction will start in mid-2016 and the road is expected to be open by early 2020.
The Rotterdamsebaan will make The Hague and its immediate region better accessible by connecting the A4 /A13 motorways and the city centre ring road. This should lessen congestion on the Utrechtsebaan, according to a statement from BAM.
Nearly 2km will be underground, running under the Westvlietweg, Voorburg-West, the Forum Hadriani archaeological site and the Binckhorst harbour.
Meanwhile, in Germany, BAM won a €1 billion contract as part of a consortium with German construction company Berger and French company5871 Eiffage. The deal is for construction and maintenance of 33km of motorway east of Munich. Construction costs are estimated at around €400 million with the remaining investment for the maintenance of the motorway for a 30 years and the maintenance of 77km of motorway between Munich and Passau.
Half-year results to June showed pre-tax profit to €45 million, up from €4 million the previous year. However, group revenue slipped back €3.4 billion, down from around €3.5 billion.
Construction and mechanical & electrical services suffered a €23.8 million loss, blamed on poor trading in Germany. But civil engineering and property helped profitability.
The company shrugged off previous fears that the recent so-called BREXIT vote – a UK referendum to leave the European Union – has had a material effect on the group’s UK division.
A weaker pound is the only impact from the vote in which the general population opted for leaving the EU. Britain is now negotiating to leave and will be entering trade talks with many countries and national political groupings. BAM reported no drop in orders as a result of the vote to leave.
“Since the vote on 23 June 2016, no orders have been cancelled and BAM has won several new orders,” a BAM statement said. “A significant percentage of the revenue for 2017 is secured in projects which are already underway.”
World Highways <%$Linker:
The new connecting road will run between the motorway at the Ypenburg interchange, A4 and A13, and The Hague’s Central Zone of Binckhorst-Centrum-Scheveningen. Construction will start in mid-2016 and the road is expected to be open by early 2020.
The Rotterdamsebaan will make The Hague and its immediate region better accessible by connecting the A4 /A13 motorways and the city centre ring road. This should lessen congestion on the Utrechtsebaan, according to a statement from BAM.
Nearly 2km will be underground, running under the Westvlietweg, Voorburg-West, the Forum Hadriani archaeological site and the Binckhorst harbour.
Meanwhile, in Germany, BAM won a €1 billion contract as part of a consortium with German construction company Berger and French company
