BAM Ireland builds up turnover increase of 29%
Updated / Friday, 16 Nov 2018 10:19
Theo Cullinane, BAM Ireland's CEO, said the highlight of the year was starting work on the new Children's Hospital
Theo Cullinane, BAM Ireland's CEO, said the highlight of the year was starting work on the new Children's Hospital
Construction company BAM Ireland said its turnover for last year rose by 29% on the back of strong activity in the country's improving construction sector.
BAM Ireland's turnover for 2017 rose by 28% to €465m while pre-tax profits for the year increased to €15.9m.
The company said its order book increased strongly by the end of the year and is is expecting further growth in 2018 with projected turnover set to rise to €545m.
During the year, the company started construction on a number of high profile projects including the New Children's Hospital at St James's campus and its satellite sites in Blanchardstown and Tallaght - the largest infrastructure project in the history of the State.
Projects completed last year included Microsoft's new offices in Leopardstown and courthouses at Letterkenny and Drogheda as part of the Courts Bundle Public Private Partnership.
BAM said that in the "challenging" civil engineering sector, its motorway projects - the N25 New Ross Bypass PPP Scheme and the M11 Gorey to Enniscorthy PPP Scheme - are progressing well.
Theo Cullinane, BAM Ireland Chief Executive said: "BAM Ireland continues to go from strength-to-strength and I am pleased to report another strong year which is reflected in our end of year results. BAM has seen the benefits of Ireland’s improving construction sector and 2017 saw work commence on some of the state’s most high-profile projects which have contributed to a turnover of €465m for 2017".
Theo Cullinane, BAM Ireland's chief executive, said the highlight of 2017 was beginning work at the New Children’s Hospital at St James’ Campus and its two satellite centres in Blanchardstown and Tallaght.
"This project represents the biggest single development in the history of the state," he stated.
But the BAM CEO also signalled a note of caution for the sector however.
"While there is year-on-year growth in the construction industry, it continues to remain in a fragile state, where the residential and civil engineering sectors are still very much challenged," Mr Cullinane said.
He said the publication of the 2018-2027 National Development Plan is welcome but its investment needs to be brought forward more quickly.
"Margins and reinvestment in businesses are too low, while obligatory risks are too high. Hugely risky under-pricing of work and risk remains, and below cost tenders are still being accepted by procurement authorities," he stated.
He also highlighted availability of labour, rising labour costs without the possibility of recovering these costs and ongoing inflation as areas of concern.