16. Intangible assets
(a) Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the Group’s interest in net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree and the amount of the non-controlling interest in the acquiree.
For the purpose of impairment testing, goodwill acquired in business combinations is allocated, at acquisition date, to the cash- generating units (CGUs) or groups of CGUs expected to benefit from that business combination. Each unit to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes.
Goodwill impairment reviews are undertaken annually in the fourth quarter or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognised immediately as an expense and is not subsequently reversed.
(b) Software
Software is stated at cost less accumulated amortisation and impairment losses. The cost of software includes direct labour and any other costs directly attributable to developing the software for its intended use. Amortisation for software is determined using the straight-line method to allocate their cost to their residual values over their estimated useful lives (between four and ten years). The assets’ residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period.
(c) Other
Other intangible assets relate to market positions (including brand names) are stated at cost less accumulated amortisation and impairment losses. Amortisation on other intangible assets is calculated over their estimated useful lives (generally between two and ten years). The assets’ useful lives are reviewed and adjusted if appropriate, at the end of each reporting period.
|
Goodwill |
Software |
Other |
Total |
|
|
As at 1 January 2024 |
||||
|
Cost |
686,757 |
38,088 |
11,232 |
736,077 |
|
Accumulated amortisation and impairments |
(367,997) |
(30,909) |
(9,317) |
(408,223) |
|
318,760 |
7,179 |
1,915 |
327,854 |
|
|
Additions |
- |
12,323 |
- |
12,323 |
|
Amortisation |
- |
(3,109) |
(782) |
(3,891) |
|
Reclassifications |
- |
5,222 |
- |
5,222 |
|
Exchange rate differences |
6,491 |
156 |
- |
6,647 |
|
325,251 |
21,771 |
1,133 |
348,155 |
|
|
As at 31 December 2024 |
||||
|
Cost |
693,743 |
55,970 |
11,228 |
760,941 |
|
Accumulated amortisation and impairments |
(368,492) |
(34,199) |
(10,095) |
(412,786) |
|
325,251 |
21,771 |
1,133 |
348,155 |
|
|
Additions |
- |
20,145 |
- |
20,145 |
|
Acquisition |
4,760 |
- |
12,297 |
17,057 |
|
Amortisation |
- |
(2,683) |
(2,603) |
(5,286) |
|
Impairments |
(1,230) |
- |
- |
(1,230) |
|
Reclassifications |
- |
4,532 |
- |
4,532 |
|
Exchange rate differences |
(7,054) |
(319) |
- |
(7,373) |
|
321,727 |
43,446 |
10,827 |
376,000 |
|
|
As at 31 December 2025 |
||||
|
Cost |
690,912 |
80,212 |
23,204 |
794,328 |
|
Accumulated amortisation and impairments |
(369,185) |
(36,766) |
(12,377) |
(418,328) |
|
321,727 |
43,446 |
10,827 |
376,000 |
16.1 Goodwill
Starting 2025, the organisational structure within division UK&I has been amended. The business units previously presented under “Ventures” were restructured and are now fully monitored and managed within the other three businesses. As a result, the goodwill previously allocated to ‘Ventures’ has been re‑allocated and restated to BAM Infrastructure UK and BAM Construct UK. Goodwill related to BAM Infrastructure UK and BAM Construct UK are assessed as significant balances. The carrying amounts of goodwill for these CGUs are as follows:
|
2025 |
2024 |
|
|
BAM Infrastructure UK |
69,391 |
72,998 |
|
BAM Construct UK |
64,067 |
67,398 |
|
Other CGUs (with non-significant goodwill balance) |
188,269 |
184,855 |
|
As at 31 December |
321,727 |
325,251 |
On 7 January 2025, the Group completed the acquisition of 100% of the shares of WL Winet bv (‘WL Winet’). WL Winet is specialised in technical installations of mobile networks in the Netherlands. Its activities are a valuable addition to the services provided by BAM Telecom (within Division NL), enabling the Group to offer clients integrated services for the construction, management and maintenance of fixed and mobile telecom networks.
The acquisition is accounted for as a business combination under IFRS 3. The purchase price amounted to €14.8 million and was settled in cash on the acquisition date. The most significant identifiable assets acquired relate to customer relationships, which were recognised and valued at €10.9 million with a corresponding deferred tax liability of €2.8 million. The customer relationships are amortised over 6 years. The remaining assets and liabilities were not individually material and the resulting goodwill of €4.8 million represents the anticipated synergies and growth potential. WL Winet has been consolidated as part of the Construction and Property business in Division NL, effective from the acquisition date.
The recoverable amount of each CGU was determined based on value-in-use calculations. Value-in-use was determined using discounted cash flow projections that cover an explicit period of five years based on financial plans approved by management and a terminal value. Key assumptions applied in determining the value-in-use are the discount rate (WACC), revenue growth rate and profit before tax margin. If and when these assumptions would change in the future, this could have significant impact on the CGU’s value in use, which might give rise to an impairment. The discount rate has been determined consistent with the other parameters of the impairment test.
The (pre-tax) WACC used to determine the value in use of each CGU is 9.4% (2024: 7.9%) subject to country specific adjustments. The key assumptions used in the value-in-use calculations for CGUs with significant allocated goodwill are as specified in the following table.
|
Discount rate (pre-tax) |
Revenue growth in forecast period |
Revenue growth beyond forecast period |
Profit margin in forecast period |
Profit margin after forecast period |
||||||
|
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
|
|
BAM Infrastructure UK |
10.9% |
8.6% |
3.2% |
0.9% |
2.0% |
2.0% |
4.2% |
3.6% |
4.3% |
3.7% |
|
BAM Construct UK |
11.1% |
8.8% |
2.9% |
3.4% |
2.0% |
2.0% |
3.4% |
3.3% |
3.6% |
3.6% |
Revenue growth rates are based on the average annual growth rate from past performance and management’s expectations of market development referenced to external sources of information. The profit margin is the profit before tax margin as a percentage of revenue and is based on past performance and the development to a realistic normalised margin in the respective CGU.
The impairment tests in 2025 did not result in impairments at CGU level (2024: no impairments). The recoverable amounts of all CGUs exceed their carrying amounts with sufficient headroom. During the year, a goodwill impairment of €1.2 million (Note 9) was recognised relating to Modern Homes Ireland (MHI), following the termination of its operations in October 2025.
