Saturday 16 December 2017

BAM construction targets growth as turnover up a third to €306m

The centre had received millions in funding
The centre had received millions in funding
Colm Kelpie

Colm Kelpie

Turnover at construction group BAM Ireland increased almost a third last year.

The group, one of the country's largest construction companies, yesterday reported turnover of €306m, along with a profit before tax of €7.5m.

BAM has been involved in a number of construction projects in the last year, including the Newlands Cross road project near Tallaght, the redevelopment of the Ulster Hospital in Belfast and the science building refurbishment and extension at Sligo IT.

Theo Cullinane, BAM Group Ireland chief executive, said the company had a strong performance last year.

The strategy now is to grow revenue from private sector activity, while continuing to work on public private partnership (PPP) investments, he said.

New public contracts however can be problematic, he said.

"Regrettably our experience in recent years with the 'new' forms of contract for Public Works has proven difficult and they mitigate against a partnership approach which is essential for the successful delivery of complex construction projects."

BAM estimates that construction activity has increased by about 15pc on 2012, even though public capital expenditure dropped by about €500m, it pointed out.

BAM's activities extend across Britain, Ireland and increasingly in the Middle East, employing about 2,000 people directly and indirectly.

Internationally BAM is working on a number of projects, included the New Port of Aqaba in Jordan as well as a new stadium and hotel development at Al Ain in the United Arab Emirates.

"While general construction activity remains challenged, there is an increase in private sector investment, particularly in the office sector, driven by foreign direct investment (FDI) demand," Mr Cullinane said.

"Public capital spending needs to rise to a sustainable figure, as a percentage of GNP, in order to bring stability to the industry.

"We have a good order book and the PPP stimulus package of €2.2bn now approaching construction stage offers a positive outlook and we are confident of picking up a significant number of related projects."

Irish Independent

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