BAM plans job cuts after Co-op Live troubles
The contractor’s UK and Ireland division fell to a near £20m loss in the first half of 2024 due to issues related to the Manchester arena project.
BAM UK signed a £253m deal to build Oak View Group’s 23,500-capacity venue in 2021 – the division’s largest ever contract – but costs soared amid “project delays and supply chain issues”, according to BAM.
BAM UK’s construction division recorded an adjusted EBITDA of -£19.8m (€23.6m) for the first six months of the year owing to its troubles on the Co-op Live job.
Revenue was also down slightly year-on-year from £498m to £468m.
BAM said the “challenging” nature of the construction market has prompted the company to “start a consultation process about reducing staff numbers within the construction segment of the division UK”.
While BAM UK struggled due to the arena job, the wider group fared better; revenue – £2.6bn (€3.1bn) – and adjusted EBITDA – £106.4m (€126.4m) – were both up 6% compared to the same period in 2023.
Ruud Joosten, chief executive of Royal BAM Group: “The group has delivered a solid performance despite the negative financial impact from the indoor arena Co-op Live in Manchester and two schools in Denmark.
“We continue our disciplined contract and risk management approach that focuses on profitability and sustainable growth.”
The opening of Co-op Live was marred by teething problems with several gigs postponed while technical kinks were ironed out.
East Manchester continues to be an exemplar in sports and entertainment led regeneration.The vision and courage shown by Sir Howard Bernstein ,RIP, Sir Richard Leese and Manchester City FC in securing the Commonwealth Games and putting in place the after use of the stadium has now shown its worth with even more developments to come.
The COOP Live Arena has attracted the biggest and the best. It will do so for many years.
The Royal BAM Group is 6% up on revenue.
The sun has risen in East Manchester.
By SportsandantEntertanmentRegeneration
I’ve heard some pretty good reviews on the arena tbf. Could it actually turn this around? Would be pretty impressive.
By Anonymous
It’s a good arena, needs more parking, stop people parking outside houses and getting broken into
By Anonymous
We didn’t need this arena as we already had good stadiums in the city. Traffic is chaos which is a nightmare if you live in the area.
By Resident