BAM reports first half year performance in line with 2 July trading update; expects positive adjusted result before tax for second half 2020
Royal BAM Group nv reports for the first half of 2020 an adjusted loss before tax of €134 million, in line with the expected range of €130-€150 million as announced on 2 July. Results were considerably impacted by the extraordinary circumstances caused by Covid-19. This is reflected in a decline of revenue in the second quarter of €360 million or 19 per cent compared to the same quarter last year. In addition, results were affected by losses at BAM International (€56 million), the Cologne metro settlement (€36 million) and underperformance at German construction and Dutch civil engineering. Dutch construction and property, UK civil engineering and BAM PPP performed well. BAM’s cash position further increased during the second quarter, supported by Covid-19 governmental measures, cost and capex reductions and the partial transfer of PPP investments. The process to wind down BAM International has started. Based on current market and Covid-19 conditions and the strong order book, BAM expects a positive adjusted result before tax for the second half of 2020.
- Revenue declined by 10% in the first half year to €3.1 billion, mainly due to impact of Covid-19
- Adjusted result before tax of -€133.6 million, caused by Covid-19, Cologne metro settlement and underperforming businesses
- Measures implemented to address underperformance and reduce risks, including starting process to wind down BAM International
- Net loss of €235 million, including €116 million of non-cash impairments, mainly on goodwill and DTA
- Cash position strengthened to €1.3 billion, including €400 million of fully drawn revolving credit facility
- Waiver obtained on interest and leverage ratios from lenders of RCF
- Capital ratio at 11.3% impacted by the net loss as well as the extension of the balance sheet, partially offset by a PPP accounting related equity increase
- Order book increase of 5% during second quarter to €13.3 billion
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