The cash outflow for H1 18 was higher than in H1 17, despite the better results. The cash outflow was €237m, namely 7.3% of revenues and 4.1x PBT, which is far above the normal seasonal pattern.
90% of the result came from the Construction and Property division, which is a risky proposition.
Note that the second caisson is actually a bit more complex and, hence, riskier given the size of it, so that another cost overrun looks more likely than not.
12 Sep 2018
H1 18: BAM burns €262m, namely 30% of its current market cap
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H1 18: BAM burns €262m, namely 30% of its current market cap
Koninklijke BAM Groep NV (BGPA:FRA) | 0 0 1.2% | Mkt Cap: 1,065m
- Published:
12 Sep 2018 -
Author:
Felix Brunotte -
Pages:
4
The cash outflow for H1 18 was higher than in H1 17, despite the better results. The cash outflow was €237m, namely 7.3% of revenues and 4.1x PBT, which is far above the normal seasonal pattern.
90% of the result came from the Construction and Property division, which is a risky proposition.
Note that the second caisson is actually a bit more complex and, hence, riskier given the size of it, so that another cost overrun looks more likely than not.