Bam Construction has blamed a combination of inflation and supply chain failures for sinking into a loss in 2023.
Revenue for the year was almost unchanged at 拢897.6m (2022: 拢900.9m) but the pre-tax loss of 拢31.4m compares to a 拢21.6m profit in 2022. At an operating level, the loss was 拢31.1m (2022: 拢21.9m profit).
Year-end work in hand dropped 38% to 拢606m, from 拢972m a year before. This was attributed to a combination of being more selective in choosing projects for which to bid and to delays in new project starts.
鈥淧rofitability has been impacted by high inflation conditions within the UK and impact of unprecedented levels of supply chain liquidations,鈥� the company said in its annual report.
Bam is not the only tier one contractor to have come unstuck by the rampant escalation of construction costs in 2023. Recent weeks have seen pre-tax losses for 2023 also reported by Sir Robert McAlpine (拢105m), Bouygues UK (拢62.1m) and Willmott Dixon (拢14.4m).
Got a story? Email news@theconstructionindex.co.uk
