ONE OF the State’s largest construction groups, BAM Contractors Ltd returned to profit last year in spite of writing down its Irish property portfolio by €37.7 million.
According to accounts filed with the Companies Office, Dutch-owned BAM Contractors Ltd (formerly Ascon Contractors) and subsidiaries recorded profit before tax of €4.4 million in 2010, a turnaround from 2009 when it recorded a loss of €9.9 million before tax.
The civil engineering group’s recovery came despite a 25.5 per cent fall in revenues to €270.2 million from €362.8 million.
The figures show that BAM Contractors Ltd is now free of any external debt after its parent, Royal Bam helped pay off the group’s bank debt of €74.8 million last year.
The group recorded an operating profit last year of €7.3 million compared to an operating profit €14.1 million in 2009.
A note attached to the accounts shows that the group wrote down its property by €37 million “due to the continued decline in the Irish property market and the expectation that the recovery of property values is unlikely to occur in the immediate term”.
The chief factor behind the turnaround was €36.5 million received in interest and finance income compared to €1.4 million in 2009.
Last month, BAM Contractors and Heineken Ireland secured planning permission for a €150 million plan to transform the former Beamish Crawford brewery site in Cork city into a multi-million euro events centre. Some of the group’s recent projects include the Portlaoise Public Private Partnership bypass and the Luas extension to Citywest.
Directors welcomed the “relatively strong performance” last year but warned of continuing turmoil in the sector.
The report states: “Public sector building works were the main contributors to the overall group performance. Our civil engineering sector is experiencing a significant reduction in activity with delays in income collection continuing to be an unwelcome feature within the industry.
The numbers employed by BAM Contractors last year declined by almost 200 to 601, with staff costs falling from €60.3 million to €44.4 million. The accounts state that the company spent €1 million on restructuring during the year with the majority related to the reduction in headcount.
