Independent engineering, IT and facilities services group, NG Bailey, has reported a 14% increase in operating profits over the past year, despite a slight fall in turnover from £500m to £481m, due to the impact of changes across the construction sector.
However, its strategy of targeting a balance of work across services (IT and facilities services), large-scale infrastructure projects and traditional building construction has ensured the business remains resilient has seen its order book break the £1bn milestone.
Figures for the 12 months ending 2 March 2018 show operating profits (before exceptional items) rose from £12m to £13.7m. Combined with a 14% increase in the company’s order book, maintaining the company’s strong financial position.
In the last year the Group has been involved in some significant projects, including the completion of the mechanical and electrical services at London Bridge, featuring the UK’s most advanced rail control centre; cementing Liverpool’s future as a world-class life science hub with a new £25m life sciences centre, and the second new-build on Newcastle’s £350m Science Central development to promote Newcastle globally as a city of science.
High-profile contracts have also been secured with Liverpool Football Club, Bloomberg and Manchester Engineering Campus Development (MECD) – the largest construction project ever undertaken by the University of Manchester.
David Hurcomb, chief executive of NG Bailey, said: “Our operating performance over the past year shows our strategy continues to deliver strong results and ensures we remain a profitable and robust business.
“We are focused on achieving sustainable growth and leadership in our core markets, and we believe there are some exciting opportunities in defence, energy, data centres and rail over the next year. However, we cannot afford to be complacent. We are operating in what is still a challenging environment for construction, with many major contractors feeling the impact.
“Despite this, we are making substantial progress in transforming the shape of the business to ensure we continue to deliver long-term success and are well placed to manage the challenges ahead.”