Member Article

NG Bailey sees services sales growth following strategic investment

NG Bailey has reported 20 per cent growth in sales within its services businesses, following a £2.7m investment in new services.

The Ilkley-based independent engineering, IT and facilities services group saw sales in building construction decline by 16 per cent. As a result, the company’s overall sales fell slightly, by four per cent, to £365m for the year ending 27 February 2015.

Following a strategic move to create a more “diversified” business that is “much less reliant” on traditional building work, NG Bailey reported 43 per cent rise in underlying operating profit to £3m.

However, the group’s profit before tax on ordinary activities for the year was £4.2m, down from £6.9m the previous year, due to lower realised investment returns.

In its annual accounts, NG Bailey states that its long-term strategy places a “greater emphasis” on services – such as IT, energy and facilities management – and on engineering construction, particularly large infrastructure projects.

During the period, NG Bailey’s secured order book increased from £550m to £590m, with the company named as preferred bidder on a further £140m of work – taking its forward order book at year end to a record £730m.

Since the start of the 15/16 financial year, NG Bailey has been named preferred bidder on a number of further contracts including the £460m electrical package at EDF Energy’s proposed Hinkley Point C new nuclear power plant in Somerset – in partnership with Balfour Beatty. This takes the company’s potential forward order book to more than £1bn.

David Hurcomb, chief executive at NG Bailey, said: “This is a strong result. We are all aware the economic environment is improving, but we also know that it is taking time to filter through to our industry.

“It’s still tough out there, particularly in building construction. Margins remain under pressure across the supply chain, which is why we seek to avoid bidding high-risk, low margin work.

“That said, all of our divisions performed profitably, which gives us a strong platform for developing a long-term, sustainable, business.

“We firmly believe our strategy of creating a much more broadly-balanced business is the right one. We remain committed to growing each and every part of our business, which includes the work we do in the traditional building construction market. This is what our business was built on when the company was founded in 1921 and, it will remain a core part of our business moving forward.

“At the forefront of our operating performance is our commitment to health and safety, encapsulated in our Safety First & Foremost strategy. In fact, our safety record is the best it has been for 10 years, proven by our RIDDOR incidents being at an all-time low.”

This was posted in Bdaily's Members' News section by Ellen Forster .