The result, delivered on revenue of £722.4m in 2020 (2019: £867.8m), follows a £2.4m loss in 2019. Major construction awards in 2020 included a project to build the Clydebank Health Centre.

Revenues across the parent BAM Construct UK group reduced by 15% to £793.1m (2019: £930.5m) due to the impact of Covid, but profit before tax again increased to £13.7m (2019: £9.4m).

The order book remained strong at £1,471.9m (2019: £1,402.9m). Of new work won in 2020 58% was for public sector clients and 42% was for private sector clients.

The year-end cash balance was £80.7m (2019: £85.8m) and the strong balance sheet improved, with net assets of £145.0m (2019: £135.7m).

In 2020, BAM FM’s turnover grew more than 10% to £65.2m (2019: £58.9m). Profit before taxation was £3.5m (2019: £3.6m). During the year BAM’s FM team was appointed to several significant new contracts for North Ayrshire Council among others.

James Wimpenny, BAM Construct UK’s chief executive, welcomed a return to more normal levels of productivity in the second half of the year following the loss of 150 jobs as part of business streamlining.

He said: “The main impact of the pandemic was on our construction operations and demand was significantly reduced in the first half of 2020, with the second half returning to more normal levels of productivity.

“We entered 2021 as a strong business and have proven to be very resilient, supported by a healthy order book and balance sheet. We remained profitable and continued operating and winning high quality new business because of the resilience and loyalty of our people, our focus on strong client relationships, a commitment to selective tendering, and because we delivered safely, efficiently and sustainably.”

“The pandemic created an opportunity to transform the way we work”, Mr Wimpenny added. “The movement of colleagues from working in offices to working from home demonstrated our ability to work in more flexible ways. This change enhanced our pioneering research programme with Timewise on flexible working for the construction industry, particularly on sites, and accelerated our new Flexible Working Policy.

“Our new policy, which goes well beyond home working, is creating flexibility across all roles and will help improve overall wellbeing and mental health; tackle the long-hours culture; attract a diverse talent pool including more women, and retain more men, particularly in later life.”

Earlier this week, BAM announced it has beaten its five-year carbon reduction targets.

The group has also improved its payment times to its supply chain to an average of 36 days (from 39 days). 

In the near future, BAM Properties hands over the development at Atlantic Square in Glasgow, which involves all of BAM’s businesses: design, construction, and FM.