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Fri July 19 2024

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NG Bailey returns to profit

13 Jun Building services contractor NG Bailey has reported a return to profitability, turning a £25m pre-tax loss last time into a near £11m profit.

Jonathan Stockton took over as chief executive on 1st June 2024
Jonathan Stockton took over as chief executive on 1st June 2024

For the year ending 1st March 2024, NG Bailey reported annual turnover of £600m, up from £532m in 2023, with an underlying operating profit of £11.2m (2023: a loss of £17.3m).

Pre-tax profit was £10.7m, (2023: £25.0m loss).

Net assets remained strong at £129m (2023: £121m), including cash and investments of £70m (2023: £83m) and, since the end of March 2023, it has no external debt. The order book increased to £1.4bn (2023: £1.3bn).

NG Bailey said that growth has been driven by its Services division, which delivered record levels of profitability for the second year in a row.

The Engineering division also returned to profitability, supported by a renewed focus on governance, quality margins and risk management, led by a new leadership team. The small number of legacy long term fixed price contracts, which were adversely hit by Covid-19 and inflation, are now complete and the cash outflows behind the company.

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Jonathan Stockton took over as chief executive on 1st June 2024 following David Hurcomb’s retirement after 14 years in charge. David Hurcomb is staying with the business a bit longer until a few commercial matters on legacy contracts are resolved. Jonathan Stockton joined NG Bailey in 2016 and has held several senior roles within the business, including chief financial officer and latterly chief operating officer. 

Jonathan Stockton said: “NG Bailey is in a strong position as we continue to execute our diversified business strategy, the success of which is evidenced by our return to profitability even in the face of tough trading conditions.

“This is testament to our high-quality order book and our market leading capability to provide services across building construction, infrastructure, and services, alongside the quality, expertise and commitment of our teams and experienced management.

“With a growing pipeline of work in recession-proof markets and strong credentials in the energy and decarbonisation sectors, we have confidence that we will be able to successfully deliver our growth plans, with a clear route to pre-pandemic levels of trading and beyond.”

The Services division’s turnover, headcount and order book now accounts for broadly half of the overall group and expects further growth in such fields as renewable connections and electric vehicle charging infrastructure.

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