Royal Bam has announced the doubling of its profits to €350 million.

Dutch conglomerate Royal Bam has announced the doubling of its profits to €350 million (£275 million), noting the “excellent contribution” of its UK construction division.

The Group has had a successful year with net profits rising to €349m from €137m in 2006. Its turnover in the 12 months to 31 December 2007 was €9bn, compared to last year’s €8.6bn.

Contributions to the results increase came from virtually every sector, but are also related to the recovery in Germany and the sale of the American activities (Flatiron). 

HBG UK, the Group’s UK construction company, achieved a better performance despite pressure on margins resulting from increased sub-contractor and supplier prices. Bam takes the view that prospects in the British non-residential construction market remain favourable, partly due to the large number of projects either planned or in the construction phase, including work in the educational and healthcare sectors.

In construction overall, there was a turnover of €3.8bn and a profit of €88m, a vast improvement over the previous period when construction operations ran up a €39m loss.

Bam is generally positive about market conditions, and with the Group’s orderbook standing at €13.8bn at the end of 2007, it expects a net profit for 2008 of at least €250m.