Bam Nuttall records ‘satisfactory’ third quarter

Bam Nuttall had a “satisfactory” performance for its UK and Ireland division during the third quarter of 2023, according to its parent firm.

In a trading update, Dutch-based Royal Bam Group said its UK civil engineering arm has “good results supported by a high activity level”.

But the performance was “impacted by inflation and supply chain challenges on some larger contracts”, it said.

Ruud Joosten, chief executive of Royal Bam Group, said: “The market conditions remain challenging as a consequence of high interest rates, political and geopolitical uncertainties and the continued pressure to attract and retain staff.

“Against this background, our order book is maintained at a good level of €9.4bn, with a clear focus on the quality of the order intake.”

Overall, the Dutch parent reported revenue of €4.5bn (£3.9bn) for the first nine months of 2023, 8 per cent lower than in the same period in 2022.

And its order book currently stands at €9.4bn, 7 per cent lower than at the nine-month mark last year.

Royal Bam topped Construction News‘ monthly contractors’ league table in July for the first time since 2020, after it was chosen to build converter stations at each end of a £2bn undersea cable between Scotland and England.

In July, Bam Nuttall left a delayed scheme to build a link road between the M54 and M6 motorways, valued at between £175m and £200m.

The civils division also leads the Linkconnex consortium, whose work on road upgrades schemes has also been subject to delays.

However, Bam said the cancellation of the Birmingham to Manchester HS2 leg had not affected its order book.

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