BAM: net profit in 2009 approximately €30 million through further impairments property
Bunnik, 16 February 2010 - The net profit of Royal BAM Group nv for 2009 is expected to be €30 million. This is €70 million less than the previous forecast of at least €100 million. BAM will be publishing its figures for 2009 in full on Thursday 4 March 2010.
The Executive Board in consultation with the new management of the Dutch property company AM has made additional impairments and provisions for property projects in the Netherlands as result of the continuing poor state of the property market. This concerns in particular the lower yield forecasts from what are often complex projects involving partnerships with third parties, and the higher risk assessment in relation to part of the company's commercial property portfolio.
On 1 January 2010, BAM merged the property activities of AM and BAM Vastgoed into one organisation under the name of AM. The integration is progressing according to plan. As far as its primary operational core activity, new-build homes, is concerned, the organisation has performed in line with expectations.
The policies of the new AM company are aimed primarily at developing areas through small and large-scale sustainable projects. It has adjusted its ambitions in accordance with current market conditions.
On the basis of the internal calculations, the Group is within its financials covenants on 31 December 2009.
Further information:
- press: A.C. Pronk, +31 (0)30 659 86 21;
- analysts: P. Snippe, +31 (0)30 659 87 07.
The Executive Board of Royal BAM Group will give a brief verbal explanation of this press release during a meeting for financial analysts on 16 February 2010, between 10.15 a.m. and 11.00 a.m. The meeting, which will be in Dutch, can be followed via a live audio-webcast. It will be possible to opt for a simultaneous English translation.