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NG Bailey makes £10.8m loss despite turnover hitting £600m

NG Bailey has announced a record turnover of £600 million for the year to 27th February 2009 – an increase of 14.3 per cent compared to the previous year.

But the M&E contractor has warned of a difficult year ahead after making a £10.8 million pre-tax loss over the past year, despite the turnover increase. It compared to a profit of £7.9 million the previous year

It is the first time in the firm’s 88-year history that turnover has passed the £600 million pound mark, up from £524.9 million the previous year.

NG Bailey chief executive Mark Andrews said: “The turmoil in the stock markets has had a direct impact on our investment portfolio.

“Although we took a prudent approach to adjusting and reprofiling our investments in line with what was happening in the markets, it was impossible to safeguard the value of the entire portfolio.

“The stock market also affected the value of the company’s pension scheme, taking it from a £6.3 million surplus to a deficit of £20.9 million.

“Our commitment to our employees saw us make a provision to top up the scheme – at a cost to us of £5.8 million, and we have already mirrored this commitment in the 2009/10 financial year by topping it up by a further £4.6 million.

“These factors, along with a goodwill write-down in terms of our recently acquired ICT businesses are the reasons for the loss.”

NG Bailey enters the 2009/10 year with work secured running at 70 per cent and despite the current climate, is optimistic for the year ahead.

Mr Andrews added: “Our strategy has never been as important. It brings together a combination of building services, system integration and building performance expertise that in turn allows us to deliver improvements to the overall environmental performance of a building, and therefore its long-term asset value, as well as impact, for the better, the cost of running that building over its life span.

“This approach takes into account the increasing cost of energy and environmental responsibility, which makes our role more critical in managing the cost and determining the performance of buildings at a specification level.”