BAM reports a 47.5% hike in pre-tax profits to €5.9m

The company yesterday reported pre-tax profits of €5.9m for 2012; up from a profit of €4m in 2011. 

Turnover was up by over 2.6% to €234m and the group’s profit margin rose from 1.75% to 2.5%, as of the end of last year.

BAM’s latest set of annual accounts also show the firm to be in robust financial health, with no bank debt and a cash balance of €95m. The latter figure was up from €68m at the end of 2011.

“In 2012 we bucked the trend by increasing year-on-year turnover in a very difficult environment for the construction industry. Over the past two years, we have managed to halt declining revenues and we are now on the upward curve again in terms of revenue and profit margin,” noted chief executive Theo Cullinane. Mr Cullinane said the outlook for BAM’s 2013 financial year is “extremely positive”, with management confident of its ability to improve the group’s position in both the Irish and international markets.

He said the group’s financial strength and experienced workforce leaves it well-positioned to pick up large-scale projects over the next few years.

“We have projects under way right across Ireland and we have strategically retained much of our core workforce; most of them working within Ireland and some gaining valuable niche expertise on our projects across the world.”

Last year BAM began work on major projects including the Tralee bypass and the Corrib gas tunnel. The Examiner