BAM FM grew its revenue by 10.7 per cent in 2020 despite a challenging year with the impact of Covid-19, according to the company’s latest financial report.
In 2020, BAM FM’s turnover grew more than 10 per cent to £65.2 million, up from £58.9 million in 2019. Profit before taxation was £3.5 million (2019: £3.6 million).
During the year, BAM FM was appointed to several new contracts, including Crawley Education Authority, London Borough of Hackney, North Ayrshire Council plus Hilton Hotels, Skechers and Premier Foods.
BAM Construct UK saw revenues across its design, construction, facilities management and property development businesses drop by 15 per cent to £793.1 million. This compares to £930.5 million in 2019, which the company said was due to the impact of the Covid-19 pandemic. Profit before tax for 2020 increased to £13.7 million, from £9.4 million in 2019.
The order book remained strong at £1.47 billion, up from £1,4 billion in 2019. In 2020, 58 per cent of new work won was for public sector clients and 42 per cent was for private sector clients. The year-end cash balance was £80.7 million compared to £85.8 million in 2019, and the strong balance sheet improved, with net assets of £145 million, compared to £135.7 million the previous year.
The company said that the main impact of the pandemic was on its construction operations and demand was significantly reduced in the first half of 2020, with the second half returning to more normal levels of productivity.
In the facilities management sector, some private sector buildings closed and, therefore, required minimal FM support, it added.
Chief executive James Wimpenny said: “The pandemic created an opportunity to transform the way we work. The movement of colleagues from working in offices to working from home demonstrated our ability to work in more flexible ways. This change enhanced our pioneering research programme with Timewise on flexible working for the construction industry, particularly on sites, and accelerated our new Flexible Working Policy.”
In 2015, BAM set a target to reduce its emissions by 25 per cent by the end of 2020. Emissions reduced by 45 per cent compared with 2015. Some reductions are a direct result of the pandemic but targets would have been achieved in normal circumstances, the company said.
BAM has also improved its payment times to its supply chain to an average of 36 days (from 39 days), the company said.