BAM Construct UK has pledged “no sudden moves” as it launches a search for more profitable markets.
Chief executive James Wimpenny said the company cannot earn enough from construction alone to invest for the future and has ordered feasibility studies to find work that will generate better profits.
The company recorded a marginally reduced annual turnover of £949.8m with profit before tax and exceptional items of £27m. It also held a strong order book of £1.76 billion and no debt, with £83m cash reserves.
The business has seven operating companies in the construction sector plus separate businesses for plant hire, services engineering and facilities management.
Wimpenny added: “Our increased profitability reflects our business reducing risk by selective tendering and working smarter. Ultimately this consistency benefits both us and our clients in a sector which has experienced recent instability.
“We are assisted by having a good balance of work between the private sector (58%) and public sectors (42%) and 65% of our work is repeat business, as clients that we have worked with before re-engage us.”
However, he added: “We cannot earn enough from construction alone to provide the investment we need in our people and the technology they need for the future. We have therefore embarked on feasibility studies for potential work streams that would generate higher levels of profit to enable growth. There will be no sudden moves. Entry to new markets will be carefully planned with assistance from experts both inside and outside the group.”
The company has 2,549 employees, completed 33 construction schemes in 2018 and secured 39 more.
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©Scottish Plant. Article posted 1/7/2019