NG Bailey has announced a rise in profits and a drop in revenue in its annual results.
Operating profit to the year March 2 2007 rose from just under £9 million to just over £12m.
Turnover fell from £491m to £467m, which the company says was in line with company predictions and down to project phasing.
Operating profit was in the region of 2.5 per cent of turnover.
Bailey, the m&e division, delivered strong performances in the North East and North West regions particularly, and started its biggest ever contract – a £430m PFI project with St Helens & Knowsley NHS Trust, in conjunction with Taylor Woodrow.
Chief executive Mark Andrews (pictured) says m&e firms should get profits commensurate with the risks in the industry.
“NG Bailey’s profit is at a reasonably healthy level, if you compare it to other companies in the sector,” he said.
“However, I think most companies feel they deserve a level of profit more commensurate with the risks and effort put into work. This would allow us to invest more in the future of the business.
“We have to work vigilantly to ensure we get more. There are very few companies in this sector making greater than 2.5 per cent profit, and many more making less than that.”
Mr Andrews pinpointed several key ways to maximise profitability - picking the right projects (and avoiding the bad ones), executing work well and adding value to the customer.