Royal BAM results for 2020, plans to 2023

Dutch construction group Royal BAM has released its financial results for 2020, along with a new strategic plan to run from 2021 to 2023.

The group reported a net loss of €122 million, which it largely attributed to the effects of the Covid-19 pandemic. However, results for the second half of 2020 showed improvements in both the company’s cash position (standing at €1.8 billion) and order book.

BAM said the final figures were boosted by good performances from residential property – through its Dutch Construction and Property division – and PPP (public private partnerships) transactions, through its BAM PPP division, the latter delivering €132 million to the full-year pre-tax figure.

As a result of the challenging financial conditions, BAM initiated a cost reduction programme in September, which the company says is on schedule to return annual savings of €100 million.

Ruud Joosten, CEO of Royal BAM Group, said, “From an operational perspective, our activities in Dutch Construction and Property and BAM PPP contributed well in 2020. In our other businesses, there is clearly room for improvement.”

Unveiling the new strategy, Building a Sustainable Tomorrow, set to run from this year to 2023, Joosten said, “The Group will restructure its portfolio of businesses to focus on markets and projects where it can leverage its proven competitive strengths and serve the growing demand for sustainable solutions in the construction sector, while substantially lowering our projects’ risk profile.

“Serving all our stakeholders–employees, clients, partners, suppliers and the communities in which we do business –BAM will structurally improve the profitability and predictability of the Group as a client-and service-driven business. As a first step, we are on track with our cost reduction programme, with a target of €100 million annually.

“I have confidence that our new strategy will provide the basis for sustainable improvement of our operational and financial performance, and lead to better returns for our shareholders. BAM has the capabilities to play a leading role in shaping the built environment in the years to come. I am looking forward to achieving this ambition in close cooperation with my colleagues.”