Operating profit rises to £6 million puts contractor in ’good position to weather any Brexit storm’
NG Bailey, which now claims to be the UK’s ’largest independent engineering, IT and facilities services group’, has tripled its operating profit to £6 million over the past year (year ending 26th February 2016), while increasing sales by 12 per cent, to £408m.
David Hurcomb, chief executive said: “Five years ago we embarked on a strategy to diversify our business and achieve an equal split of work across services, infrastructure and building construction. Our operating performance demonstrates that our strategy has worked. Our focus now is to retain this split. Given our industry-leading engineering expertise and our focus on exceptional customer service delivery, I believe this is achievable. Our solid financial position, and our ability to continue to invest in the company, puts us in a good position to weather any economic storm that may arise from the recent Brexit vote.”
During the period the company won £500m of new work. This included significant contracts with Land Securities for its retail portfolio and to help it reduce energy use within a number of its commercial properties.
The company said that the combination of a recod secured order book of £673m, net assets of £116m and cash and investments of over £75m, alongside no third party borrowings,put Baileys y in a very solid financial position.
The group attributes its strong performance to the success of its diversification strategy. Over the last four years, NG Bailey has placed an emphasis on better balancing its portfolio of work across services (IT, energy and facilities management), large-scale infrastructure projects and traditional building construction.
During the period, the firm was awarded a five-year, £50m-plus contract with Fujitsu to support its work on IT and communication technology across the Ministry of Defence. It was also appointed preferred bidder on a number of schemes, including the electrical package, on the high profile - and controversial - Hinkley Point C nuclear power plant. in a joint venture with Balfour Beatty.
During the year it also delivered one of the world’s most ‘intelligent’ stadia – the SSE Arena in Belfast – and an innovative combined heat and power link, the first of its kind in Europe, at Birmingham New Street station.
The company said the growth has been achieved alongside a £2m investment in sectors, such as energy management and smart buildings, and a continued annual investment of £3m in the training and development of its people. The success is also down to continued cost control measures, the company added.