Revenue at Royal Bam's UK operations, Bam Nuttall and Bam Construct, fell 16% during the first half of 2010, compared to the same period a year ago.
Royal Bam's interim results, which do not separate out performances for its individual UK operation companies, show revenue fell to 拢727m (H1 2009: 拢767m), but profit increased to 拢16.9 from 拢13.1m.
However, the firm said its margin 鈥渨as negatively affected by the high tendering costs involved in acquiring new contracts鈥�.
It added: 鈥淭he British market is characterised by continuing uncertainty about the consequences of the expected government spending cuts.鈥�
Most of the revenue drop occurred at Bam Construct, though its order book has increased compared to year-end 2009.
In contrast, turnover at Bam Nuttall was 鈥渙n a par with the first half of 2009鈥�. The civils outfit delivered a 鈥渟trong order book in a difficult market鈥� where 鈥渞esults were under pressure in the first six months of 2010鈥�.
Royal Bam said: 鈥淭his market is marked by intense competition, especially because of the tremendous uncertainty about the consequences of government spending cuts. Nevertheless, the amount of work in the order book in the United Kingdom increased significantly in the first six months of the year and BAM Nuttall is in a good position.鈥�
Overall, the group's order book climbed by 12% in the first six months of 2010 to 拢10.2bn, most of the increase achieved in the United Kingdom and Belgium.
Group revenue fell to 拢2.82bn from 拢3.32bn, with pre tax profit rising to 拢54.4m from 拢44.1m, compared to the first half of 2009.
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