Profits grow threefold at NG Bailey
Building services contractor NG Bailey grew its turnover 12% last year and trebled its operating profit.
NG Bailey’s operating profit for the year ending 26th February 2016 reached £6m on turnover of £408m – a 1.5% margin.
The company’s secured order book rose 14% to a record £673m at year end. And with no third party borrowings, net assets of £116m and cash and investments of more than £75m, the directors consider the company to be in a solid financial position.
Over the last four years, NG Bailey has pursued a diversification strategy, balancing its portfolio of work across services (IT, energy and facilities management), large-scale infrastructure projects and traditional building construction.
In the last financial year the company won £500m of new work. This included significant contracts with Land Securities for its retail portfolio and to help it reduce energy use within a number of its commercial properties.
NG Bailey also picked up a five-year, £50m+ contract with Fujitsu to support its work to transform the delivery of information and communication technology across the Ministry of Defence.
Also in the pipeline is a £460m contract in joint venture contract with Balfour Beatty for the electrical package for EDF’s planned Hinkley Point C nuclear power plant, should it still go ahead.
NG Bailey chief executive David Hurcomb said: “Five years ago we embarked on a strategy to diversify our business and achieve an equal split of work across services, infrastructure and building construction. Our operating performance demonstrates that our strategy has worked.
“Our focus now is to retain this split. Given our industry-leading engineering expertise and our focus on exceptional customer service delivery, I believe this is achievable.
“Underpinning our operating performance is our commitment to health and safety. We have an industry-leading health and safety record. Our accident incident rate (AIR) is five times lower than the industry average, and this year we have seen our lowest RIDDOR level for 30 years.
“Our solid financial position, and our ability to continue to invest in the company, puts us in a good position to weather any economic storm that may arise from the recent Brexit vote.”
Chairman Kevin Whiteman added: “This is a strong set of results and we are in a strong financial position, with the resources to continue to selectively invest in growth areas and in our people to provide better returns for shareholders in the longer-term.
“As an independent business we understand that long-term success is about being both a profitable and responsible business, which is why our One Approach sustainability strategy is also core to our continued growth.”
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This article was published on 5 Aug 2016 (last updated on 5 Aug 2016).