Several “challenging” contracts in its engineering division were not enough to prevent NG Bailey from returning to profitability in its most recent financial year.
Profit before tax for the mechanical and electrical specialist was £3m for the 12 months to 25 February 2022. The previous year had fallen to £4.4m.
Turnover was down slightly to £499.5 million compared to last year’s £507 million.
Chief executive David Hurcomb said some “challenging” contracts in the company’s engineering business caused the division to slide to an operating loss of £5.1m , although the company’s “diversified business plan” allows this
Nearly half of its sales come from its services segment, which operates primarily in the highly regulated infrastructure market and has Earn recurring revenue in these markets.
Hurcomb added: “This has provided resiliency during the pandemic, supported our return to profitability this year, and demonstrated first-hand the strength of our diversification plans.”
Following losses in the engineering division, the company has adopted a three-year business plan that is expected to guarantee a recovery to pre-pandemic
12 as of February 28, 2020 During the month, the group recorded a pre-tax profit of £20.5m on a turnover of £573.4m.
Hurcomb added: “With high quality orders, more opportunities for repeat revenue and the commitment of the UK government With substantial investment in infrastructure and decarbonization fueling the economic recovery, we confidently look forward to a return to pre-pandemic trading levels over the medium term.
“This is further recession resilient The market is supported by growing job channels. “
The company also displayed a “cautious” attitude due to inflation and was therefore “highly selective” in selecting jobs to bid.
NG Result It is revealed that Bailey has also adopted a modern approach to building technology, including at Forge in London, where it is a sub-contractor to MEP. The joint venture between Sir Robert McAlpine and Mace is leading the £139 million project, which Architectural News visited last November.
NG Bailey is one of many contractors focusing on so-called Gigafactories – Where electric car batteries are produced – as a source of income, a £60m contract was recently awarded to expand a car battery factory in the West Midlands.
