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Wed December 01 2021

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Covid costs push NG Bailey into the red

28 Oct The pressures of the Covid-19 pandemic pushed building services contractor NG Bailey into losses last year.

At group level, NG Bailey made an underlying operating loss of £2.7m (compared to a £19.8m profit the previous year). Turnover fell to £507m, down from £573m the previous year).

NG Bailey Limited made a pre-tax loss of £10.2m (2020: £16.6m profit) on turnover down 12% to £294.1m (2020: £334.9m). There were net exceptional costs of £2.0m relating to redundancy payments to the 8% of staff that were let go after the first national lockdown came in spring 2020, plus the cost of topping up salary payments to furloughed employees.

Temporary site closures, access restrictions, productivity challenges from social distancing measures and delays/cancellations of projects all took their toll on the business.

Net group assets at year-end were £141.8m, including cash and investments of £85.8m.

However, the directors say that the company is “exceptionally well placed to deliver on its strategic business plan” and that its diversified strategy, solid market positions across targeted sectors and strong balance sheet positions the business for further growth.

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Chief executive, David Hurcomb said: “In what is NG Bailey’s centenary year, it is pleasing to look forward with confidence and optimism as the UK economy and construction industry continue to recover from the Covid-19 pandemic.

“Our ongoing strategy of achieving a balanced business across our Engineering and Services divisions is supported by a £1.2bn forward order book, made up of a diversified opportunity pipeline which focuses on key UK recovery sectors and puts us in a strong position.

“The UK government’s commitment to infrastructure spending and its decarbonisation targets, coupled with our leading reputation in key sectors, where we see significant growth opportunities over the next five years, allows us to remain confident that the markets in which we operate are resilient and that we are in a strong position to benefit.

“Additionally, in the current trading environment, one of our key differentiators is the strength of our balance sheet. We are committed to making further investment in our target areas of work and in our people, to ensure our business remains sustainable and thrives over the longer term.”

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