Bam Nuttall holds margin at 2% after profit slide

BAM Nuttall is expecting to bounce back in 2017 after a fall in revenue and profits last year.

The firm said it was now hopeful of securing a major rail order for the £2bn TransPennine Route Upgrade and further sections of the Highlands Enhancement Programme.

In results just placed at Companies House, BAM Nuttall revealed pre-tax profit fell 27% to £14.3m after revenue at the civil engineering business dropped a fifth to £637m.

Despite the falls BAM Nuttall managed to hold operating margin at around 2%.

As a result of the fall in turnover the average staff head count over the year dropped from around 3,000 to 2,800, with weekly paid workers making up most of the fall.

The firm also revealed it is working with construction equipment manufacturers to redesign forward tipping dumpers after the death of a site worker in 2016.

John Cameron was killed after being struck by a dumper being used to carry gravel in November at Blackhillock Quarry, near Keith in Morayshire on a job for Scottish and Southern Electricity Networks.

Stephen Fox, chief executive, said: “There have been a number of similar incidents in the construction industry in 2016.

“We have inititated a widely supported motion to fundamentally redesign forward tipping dumpers to eliminate incidents completely, but when events such as this occur it illustrates just how difficult a task we all face.”

from Construction Enquirer http://www.constructionenquirer.com/2017/06/13/bam-nuttall-holds-margin-at-2-after-profit-slide/

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