Bam Construction, the contractor behind the delivery of Manchester’s No1 Spinningfields last summer, has posted a pre-tax profit of £20.9m in its latest full-year results, its strongest performance since 2010.
The contractor’s pre-tax profit for the year to 31 December 2017 is its strongest result for seven years, when the company reported a pre-tax profit of £24.2m in its results for the year to 31 December 2010.
It is also a significant improvement over its full-year results for 2016, when the company reported a pre-tax profit of £5.3m. Revenue, meanwhile, declined slightly to £903.5m, down from £987.6m a year earlier.
Bam Construction’s executive director Douglas Keillor said the decline in revenue was due to selective bidding and the company’s focus on “securing high value added projects”.
Recent contract wins for the business in the North West, which is headed up by regional director Ian Fleming, include 100 Embankment, where the company stepped in for collapsed contractor Carillion on the £65m, 166,000 sq ft office.
It also completed The Pavilion in Spinningfields for Allied London, which will be home to The Ivy. It is the latest project the contractor has delivered for the developer following No1 Spinningfields last year.
The company is also working on a series of major schools in the region worth £60m, all of which are for education provider Laurus and the Education & Skills Funding Agency. These include schools in Cheadle, Didsbury, and Tameside.
The group said it would be looking to undertake 25% of its work through frameworks in the future and added “the potential of the private rented sector market will be considered” this year.
The bulk of the company’s work is already secured through its preferred procurement route of two-stage tendering and negotiation, rather than single-stage bidding.
Bam’s chief executive, James Wimpenny, who replaced retired chief executive Graham Cash earlier this year, said: “Bam’s strategy will continue to be founded on operating efficiently and managing cash effectively. We aim to stay at the forefront of digital construction and data management.
“We are able to offer an integrated range of services across the lifecycle of a building and we will maintain our focus on competing for complex, high value work with clients who appreciate quality over price and value a collaborative approach.”
Bam Construction forms part of the wider Bam Construct UK group, which includes other business Bam Properties, Bam Design, Bam Services Engineering, Bam Plant, and Bam FM.
The overall group company posted a pre-tax profit of £19.3m, while revenue stood at £957.5m, reflecting a pre-tax margin of 2%.