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Thu June 24 2021

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NG Bailey sheds 8% of staff

10 Nov 20 Building services contractor NG Bailey has reported an increase in profit and turnover for its financial year ending just as the Covid pandemic began to take hold in the UK.

Chief executive David Hurcomb
Chief executive David Hurcomb

However, after the end of the financial year the money began to slow and 8% of the workforce was let go.

For the year ended 28th February 2020, NG Bailey Group made a pre-tax profit of £20.5m (2019: £16.1m) on turnover up 3% to £573m.

Underlying operating profit increased more modestly, from £19.4m to £19.8m.

Chief executive David Hurcomb, said: “With a strong pipeline of opportunities and continued commitment from the government to defence and infrastructure spending, including exciting emerging sectors such as battery storage and manufacture, NG Bailey is confident it is structured to get through the current crisis and return to the levels of profitability of recent years in the medium term.

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“We are well placed to continue to play a significant role in the long-term opportunities across UK defence and infrastructure. These sectors will play an important role in rebuilding the UK economy and are where there is positive government commitment.”

He continued: “Covid-19 has undoubtedly brought significant challenges and like all businesses we face a new reality. We are experiencing reduced revenues currently and expect this to continue for some time as investments and spending by customers is deferred.

“As a result, we sadly have had to reduce our headcount by around 8% to match this lower workload. However, despite the expectation that ongoing disruption from Covid-19 and Brexit uncertainties will continue to make trading conditions very tough for some time, we are confident that we will emerge stronger.

“We believe our strategy of achieving a balance in the business across our engineering and services divisions, coupled with our pipeline of work and our strong balance sheet, puts us in a strong position to face any challenges that lie ahead.”

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