Profits soar by 40 per cent at Hemel Hempstead-based construction firm
A construction firm headquartered in Hemel Hempstead saw its profits rise by about 40 per cent last year.
BAM Construct, based in Breakspear Park, Breakspear Way, and which employs 400 people in the area, has reported profits of £27 million for 2018 - up from £19.3 million a year earlier.
Turnover fell slightly by 0.3 per cent to £949.8 million over the same period.
The company reported a strong order book of £1.76 billion, no debt and with £83 million cash reserves.
It also revealed it had reduced its carbon emissions by 13 per cent to an all-time low of 11,488 tonnes.
James Wimpenny, chief executive, said: “Our customers appreciate the consistent performance we deliver, both in our operations and in our balance sheet.
“Our increased profitability reflects our business reducing risk by selective tendering and working smarter.
“Ultimately this consistency benefits both us and our clients in a sector which has experienced recent instability.
He added: “We are assisted by having a good balance of work between the private sector (58 per cent) and public sectors (42 per cent) and 65 per cent of our work is repeat business.
“That is something I believe shows our collaborative culture is one our clients appreciate adds value to their projects.
Mr Wimpenny added: “We cannot earn enough from construction alone to provide the investment we need in our people and the technology they need for the future.
“We have therefore embarked on feasibility studies for potential work streams that would generate higher levels of profit to enable growth. There will be no sudden moves. Entry to new markets will be carefully planned with assistance from experts inside and outside the Group.”
BAM is owned by the 150-year-old Royal BAM Group - its early projects including Tate Gallery, Natural History Museum and Park Lane Hotel.