NG Bailey has announced its financial results for the year to March 1, 2013, reporting an underlying profit of £1m and sales of £422m for the period.
NG Bailey saw a fall in sales of 8 per cent compared with the previous year. The company attributed this loss to the continued challenges in the building construction sector, which also resulted in an overall group loss, after tax, of £6.9m – due in part to restructuring costs.
Strong performances were, however, achieved in both of NG Bailey’s services businesses – IT Services and Facilities Services – which between them increased sales by 10 per cent and operating profitability by 69 per cent.
In addition, the company’s performance in the rail sector saw sales double during the period – it also won Network Rail’s coveted Supplier of the Year award for 2013.
The company said it had invested more than £6m in new sector development and employee training over the past 12 months – including its apprenticeship programme.
NG Bailey David Hurcomb chief executive said: “We’re not alone in experiencing challenging times, but what’s different about us is that our foundations are very solid.
“We don’t rely on borrowings – instead we have a strong bank balance, considerable net assets, a £700m order book and backing from shareholders who are dedicated to the long-term future of the business.
“I am satisfied with our performance over the last year, especially given the exceptionally tough environment that we continue to operate in.
“We have seen strong growth in several areas, which has unfortunately been offset by a decline in building construction.
“Sales across services and engineering construction are up 26 per cent year on year – which underlines that our continued strategy of diversification, to better balance the business across building construction, engineering construction and services, is still the right one.
“Sales are now more evenly split across this portfolio.
“We are a well-balanced, profitable business and we have successfully maintained strict cost controls, while still investing to ensure our long-term growth plan is achieved.”
Over the period NG Bailey won new contracts with major customers including Land Securities, Arla Foods, Linklaters, Birmingham City University and Network Rail as well as securing a number of contract renewals with companies including BT, working for the MoD, and with one of the UK’s largest banking groups.