Margins at Bam Nuttall have climbed to more than 5% as the firm’s boss admitted its latest numbers were better than expected.

The civils arm of Bam posted a turnover of £1.2bn and pre-tax profit of £64.4m last year giving the company, which counts HS2 and water schemes among its portfolio of contracts, a margin of 5.3%.

Executive director Huw Jones said: “Our 2023 [figures] exceeded our forecast and resulted in a margin of 5.3%, largely due to the resolution of legacy projects.”

Bam Nuttall’s margin last year climbed over the 5% benchmark cited by many in construction

He added: “We have continued a prudent growth strategy by securing sustainable revenue through selective tendering wit out strategic clients.”

Revenue in 2022 was just over £1bn but pre-tax profit was only £4m giving it a margin of just 0.4%.

In August, Nuttall’s sister firm Bam Construct posted a pre-tax loss of £31m in 2023 compared to a £22m profit last time. Revenue was flat at just under £900m.

The building business, which has racked up losses on its Co-op Live scheme in Manchester, said it had been hit by supply chain collapses and the cost of inflation.