Adjusted pre-tax result of €34 million in 2020; new strategic plan for 2021-2023
After the disappointing first half year Royal BAM Group recorded an adjusted result before tax of €168 million over the second half of 2020, supported by €118 million of the BAM PPP transaction. For the full year, BAM reports a net loss of €122 million, mainly driven by Covid-19 and the loss of €110 million at BAM International. Apart from Dutch Construction and Property, and BAM PPP, the operational performance was not satisfactory. The execution of the €100 million cost reduction programme announced in September is on schedule. During the second half year, there was further improvement of the cash position and the order book. The new strategy for 2021-2023 will lead to a smaller but profitable and predictable company, while creating a sustainable platform for future growth. BAM will provide its outlook for 2021 in due course.
- Good results from Dutch Construction and Property, mainly driven by residential, and BAM PPP
- BAM PPP transactions contributed €132 million to the full year adjusted result before tax, going forward BAM PPP is classified as joint venture
- Strong positive cash flow development; year-end cash position at €1.8 billion (including €400 million RCF)
- Order backlog maintained at high level with continued focus on risk/reward balance
- Capital ratio improved to 13.4% versus 11.3% in first half-year, supported by the BAM PPP transaction
- Cost reduction programme on schedule to reach annual savings of €100 million
- New strategy 2021-2023: restructure portfolio, increase profitability and create sustainable platform for future growth
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