Royal BAM Group maintains dividend for 2003 and is cautiously optimistic regarding 2004
Royal BAM Group has published its year results 2003 on 25 March. The net profit of Royal BAM Group nv – before deduction of the Competition Authority fine – increased by 79% in 2003 to €83.4 million (2002: €46.7 million).
On 19 December 2003, the Netherlands Competition Authority (NMa) imposed fines on several Royal BAM Group business units, as well as other companies, for breaches of the Competition Act before 2002. The total amount of the fines for the Group was €27.4 million. After deduction of this charge, the profit for 2003 came in at €56 million.
On the basis of current information, Royal BAM Group expects to achieve a turnover of approximately €7 billion in 2004. In view of the tough market conditions at present and the uncertainty with regard to how soon the economy will begin to pick up again, it is not clear at what sort of price the order book for 2005 can be filled in a number of areas, making it difficult to give a firm profit projection for 2004. However, on the basis of current information, and taking account of the quality of the order book and other factors, Royal BAM Group should be able to achieve a net profit of between approximately €75 million and €85 million (excluding any implications of legal proceedings). See also the press release of 25 March.