Bam Construction reports significant financial losses attributed to inflation and supply chain issues, as revealed in their recent financial report. The firm experienced a pre-tax loss of £31.4m for 2023, impacted by economic challenges and strategic decisions.
- Revenue for 2023 was £897.6m, a slight decrease from 2022’s £900.9m, illustrating financial strain.
- The firm’s forward-order book dropped notably to £606m, down 38% from the previous year’s figure.
- Strategic restructuring led to job cuts with Bam restructuring its operational regions from seven to five.
- Exceptional costs resulted in a £19.9m loss in the first half of 2024, according to unaudited results.
Bam Construction has disclosed a concerning pre-tax loss of £31.4m for the year ending December 2023, as it grapples with high inflation and substantial supply chain insolvency. The contractor’s revenue amounted to £897.6m, slightly down from the previous year’s £900.9m, indicating economic pressures overshadowing its financial performance.
The company’s executive director, Kim Sides, highlighted that profitability has been severely impacted due to the high inflation environment and an unprecedented wave of supply chain liquidations. Bam’s strategic approach has been to prioritise specific projects, resulting in a diminished forward-order book valued at £606m at year end, a stark 38% reduction from the prior year.
Adding to its financial woes, Bam Construction announced it has reduced its operational regions from seven to five, leading to a small number of redundancies in its workforce. Furthermore, the company has made an additional 40 job cuts across its UK and Irish operations as of June 2024.
Former chief executive, James Wimpenny, retired in January 2024, succeeded by Kim Sides who assumed her role in April 2024. Bam Construction’s immediate parent firm, Bam Construct & Ventures, also revealed a €14.8m loss for 2023 in unaudited figures by Royal Bam.
The year 2024 has seen further challenges, with Bam Construction posting a £19.9m loss in the first half due to exceptional costs arising from the completion of the Co-op Live Arena in Manchester, based on recent unaudited results.
Bam Construction’s financial setbacks highlight the significant impact of economic challenges on its operations.
