Civil engineering contractor BAM Nuttall has delivered an £18 million pretax profit in 2015 according to its latest financial results – the turnaround follows on from an £18 million loss in 2014.

The firm delivered a 2.3% operating margin from £787 million turnover attributed to a strategy rethink which has seen BAM take a more selective approach to bids and only select projects with appropriate contractual terms.

BAM Nuttall is part of the BMB joint venture with Morgan Sindall and Balfour Beatty appointed by Tideway to deliver the West section of the Thames Tideway Tunnel, valued at £416 million.

At the end of May  the Bam Nuttall and Mott MacDonald (BMM) joint venture won two more contracts for flood defence work via the Environment Agency’s Water and Environment Management (WEM) framework. The new contracts cover the North Asset Recovery Programme and the Exeter Flood Alleviation Scheme. The new contract wins follow on from previous contract awards in Leeds and Great Yarmouth for the BMM jv.

Commenting on the results, Chief Executive Stephen Fox said:

“We will continue to pursue this strategy of selectivity with projects that we can add value to through two-stage early contractor involvement.”

 “We have maintained our focus on Royal BAM Group’s Back in Shape programme, which has generated improvements in the quality of our order intake, the use of trade working capital and reductions in our company overhead costs.”

 “Our forward order book is healthy following the award of contracts at Hinkley C, the western section of Thames Tideway, The highlands enhancement programme and securing places on several framework programmes with Transport for London, Environment Agency, South East Water and the Generation 3 local authorities’ highways scheme.”