{"id":514422,"date":"2025-02-13T12:42:47","date_gmt":"2025-02-13T12:42:47","guid":{"rendered":"https:\/\/www.constructionnews.co.uk\/?p=514422"},"modified":"2025-02-14T17:07:45","modified_gmt":"2025-02-14T17:07:45","slug":"bam-construction-suffers-40m-loss-after-co-op-live-problems","status":"publish","type":"post","link":"https:\/\/www.constructionnews.co.uk\/contractors\/bam-construct\/bam-construction-suffers-40m-loss-after-co-op-live-problems-13-02-2025\/","title":{"rendered":"Bam Construction suffers \u00a340m loss after Co-op Live problems\u00a0"},"content":{"rendered":"<p>Bam Construction made a loss of more than \u00a340m last year after the Co-op Live Arena in Manchester went at least \u00a385m over budget.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>A full-year results announcement, published this morning (13 February) by <a href=\"https:\/\/www.constructionnews.co.uk\/contractors\/bam-construct\/\">Netherlands-based parent firm Royal Bam<\/a>, show the group\u2019s UK construction business made a loss of \u20ac48.3m (\u00a340.3m) before interest, tax, appreciation and amortisation (EBITDA) in 2024.<\/p>\n<p>Royal Bam blamed \u201cproject delays and supply chain issues\u201d as well as \u201ca loss for Co-op Live\u201d.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>The cost of completing the Co-op Live job spiralled from \u00a3365m to at least \u00a3400m and is likely to reach \u00a3450m, developer Oak View Group <a href=\"https:\/\/www.constructionnews.co.uk\/buildings\/bam-takes-co-op-live-loss-on-the-chin-15-05-2024\/\">said in May<\/a>.<\/p>\n<p>Oak View chief executive Tim Leiweke added at the time that Bam \u201clost a lot of money on the job\u201d but had been \u201chonourable\u201d and \u201ctaken it on the chin\u201d.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Bam Construction UK saw its revenue fall 14 per cent from \u20ac1.05bn to \u20ac905m\u00a0 last year, which Royal Bam said was due to \u201cthe more challenging market circumstances\u201d in the sector.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>However, Royal Bam reported an increase in revenue and profit in its UK civil engineering division \u2013 which it described as the \u201cmain\u201d driver behind the 58 per cent increase in its UK and Ireland order book to \u20ac7.2bn.<\/p>\n<p>Bam turned over \u20ac1.57bn from UK civil engineering operations, generating EBITDA of \u20ac95.5 \u2013 with these figures up by 15 and 24 per cent respectively on the <a href=\"https:\/\/www.constructionnews.co.uk\/contractors\/bam-construct\/bams-uk-construction-business-slips-into-the-red-15-02-2024\/\">previous year<\/a>.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Bam said its key contract wins in the UK included deals to <a href=\"https:\/\/www.constructionnews.co.uk\/civils\/hs2\/bam-ferrovial-jv-picked-to-deliver-hs2-track-11-12-2024\/\">design and build 140 miles of track for HS2 in a joint venture with Ferrovial<\/a>; carry out improvements at Luton Airport; and <a href=\"https:\/\/www.newcivilengineer.com\/latest\/bam-appointed-for-full-rebuild-of-raac-afflicted-school-in-durham-21-02-2024\/\">rebuild the RAAC-affected St Leonard\u2019s Catholic School<\/a>.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>It said it expected the UK construction market to grow, with the government looking to invest in energy and already negotiating with developers of small modular nuclear reactors \u2013 including Rolls Royce, which Bam is working with.<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Across the group, Royal Bam reported revenue growth of 3 per cent to \u20ac6.5bn (\u00a35.42bn), with EBITDA of \u20ac333m (\u00a3277m).<span class=\"Apple-converted-space\">\u00a0<\/span><\/p>\n<p>Ruud Joosten, chief executive of Royal Bam Group, said: \u201cNearly all of Bam\u2019s activities performed strongly, highlighting the resilience and effectiveness of our business model.<\/p>\n<p>\u201cHowever, project delays, cost overruns and supply chain disruptions at school projects in Denmark and various construction projects in the UK did weigh on EBITDA growth.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bam Construction made a loss of more than \u00a340m last year after the Co-op Live Arena in Manchester went at least \u00a385m over budget.\u00a0 A full-year results announcement, published this morning (13 February) by Netherlands-based parent firm Royal Bam, show the group\u2019s UK construction business made a loss of \u20ac48.3m (\u00a340.3m) before interest, tax, appreciation &#8230;<\/p>\n","protected":false},"author":90383,"featured_media":498547,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[552,528],"tags":[],"class_list":["post-514422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial","category-bam-construct"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.7 (Yoast SEO v26.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Bam Construction suffers \u00a340m loss after Co-op Live problems\u00a0 | Construction News<\/title>\n<meta name=\"description\" content=\"BAM Construction made a loss of more than \u00a340m last year after the Co-op Live Arena in Manchester was at least \u00a385m over budget.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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