Annual Report 2009 Royal BAM Group nv

Royal BAM Group operates in the civil engineering sector on the Dutch, Belgian, UK, Irish and German markets.
BAM International carries out specialist construction and civil engineering projects worldwide. The Group achieved
a turnover in the civil engineering sector in 2009 of €3,944 million (2008: €3,795 million). The result before tax was
€114.2 million (2008: €139.2 million), which represented a margin of 2.9 percent (2008: 3.7 percent). The order book
fell to €4,777 million (2008: €5,248 million).
The Dutch civil engineering companies recorded lower
results in 2009, but considering the market conditions
still performed well. BAM Wegen and BAM Infratechniek,
in particular, contributed substantially to the results. The
Dutch order book is at a comparable level to that of the
preceding year. The volume in the Dutch civil
engineering market remains steady, in part because of
the projected impact of government incentives.
In the United Kingdom, BAM Nuttall performed well in
difficult market conditions. Measured in pounds sterling,
revenue and results were similar to the preceding year.
The current market is characterised by strong
competition and lack of certainty regarding lower
government spending after the upcoming elections.
The order book increased.
The Belgian civil engineering operations recorded higher
revenue, results and margins during 2009 than they did
in the preceding year. Despite sufficient market volume,
fierce competition put pressure on pricing when
tendering for contracts.
In Ireland, BAM Contractors achieved a good margin
from reduced revenues. Circumstances in the Irish
market are extremely difficult and the market volume in
both the private sector and the public sector is very low,
which is reflected in a diminished order book. BAM
Contractors is therefore forecasting significantly
reduced revenues for the next few years and has
modified its organisation accordingly.
German company Wayss & Freytag Ingenieurbau
achieved a modest profit, as anticipated, from increased
revenue. The order book is at a high level due in
particular to various large tunnel contracts.
BAM International made a good contribution to the
overall result from higher revenues. The order book is
considerably smaller than the high level of 2008. The
company focuses on specialist niche markets outside
Europe, where it applies a selective contracting policy.
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2009