HBG/Nuttall profits up

HBG Construction and Edmund Nuttall, the two UK subsidiaries of Dutch construction giant Royal Bam, made excellent profits in 2003, said a group spokesman.
Their combined turnover of £1.2bn generated a pre-tax profit of £49m, representing an overall margin of 3.9%.
Royal Bam has become Europe's fifth-largest construction group with an annual turnover of £5bn. Latest financial results (12 months to 31 December 2003) show a £38m profit after the burden of a chunky £18m fine.
A spokesman said: "We were accused of being in a cartel with other Dutch contractors. None of this related to the UK."
Bam has made a huge leap in size, from a £2.4bn turnover in 2002, as a result of its acquisition of HBG, a rival Dutch construction group, 16 months ago.
Integrating the two businesses led to a one-off cost of £23m last year.
Bam showed no interest in buying Ballast plc, the UK construction wing of a third Dutch-based group, last year.
"In the UK, we're confident in HBG Construction as it stands," said the spokesman. "It is well spread with a good balance of activities. Adding to turnover is not the main focus - we are more interested in margins."
General construction in the UK had been hesitant in 2003, he said, before adding: "HBG Construction was able to buck the trend, however, thanks to the excellent regional coverage and focus on client groups, including retail and public sector. With nine PPP contracts, the group is well-positioned in this market."
Bam's results statement claims that Nuttall is "market leader in profitability in the UK civil engineering market", but provides no evidence to back this up.
Much of Nuttall's turnover is undertaken through framework contracts.