NG Bailey returns to profit despite engineering arm losses

Aaron Morby 2 years ago
Share

Independent M&E specialist NG Bailey has returned to profitability after last year’s £4.4m loss from stable revenue of just over £507m.

Hurcomb says in the current trading environment, the strength of NG Baileys balance sheet remains one of its key differentiators as customers look for stability in supply chains.
Hurcomb says in the current trading environment, the strength of NG Baileys balance sheet remains one of its key differentiators as customers look for stability in supply chains.

For the year ended February 2022, pre-tax profit recovered to £3m, although the business had to endure further losses from the main engineering arm.

NG Bailey’s services division recovered quickly following the impact of the pandemic with increased turnover and profitability. Collectively the underlying operating profit, excluding goodwill amortisation, was £7.1m. Turnover for the division now accounts for almost half of the overall group.

The expected longer recovery of the construction and engineering sectors, coupled with a small number of challenging contracts, resulted in the engineering division posting an operating loss of £5.1m.

Chief executive of NG Bailey, David Hurcomb, said the engineering division has embarked on a three-year business plan that will see a return to pre-pandemic levels of profitability based on a strong, visible pipeline of work.

He said that NG Bailey had maintained a strong balance sheet with net assets of £147m, including cash and investments of £79m. The group’s order book also remained healthy and consistent at £1.2bn.

“NG Bailey has made a strong recovery following the pandemic. This demonstrates the strength of our diversified business plan which is increasingly important given the challenging economic environment driven by inflationary pressures and skilled labour shortages,” added Hurcomb.

“With a high-quality order book, further opportunities for repeat income and the UK government committing to drive economic recovery through substantial investment in infrastructure and decarbonisation, we look forward with confidence to returning to pre-pandemic levels of trading in the medium-term. This is further backed by a growing pipeline of work in recession-resilient markets.”

He said the promotion of Tim Simmons as managing director of the services division and the appointment of John Kelly as managing director of the engineering division had put in place strong leadership for growth.

Latest news

Squibb liquidator probes £2m of “missing” plant

Machinery, cars and scrap metal have disappeared at demolition specialist
47 mins ago

Galliford Try to re-enter affordable homes market

Contractor sets out new five-year plan to build margin to 4%
21 mins ago

Former Sellar chief to lead civils contractor Kilnbridge

Owen Dannatt joins as new CEO as founder Dermot McDermott becomes Chairman
26 mins ago

Hunt starts for nuclear fusion plant construction partner

Fusion energy plant to be built at West Burton coal power station site.
16 mins ago

National Grid raises £7bn for big infrastructure upgrade

Rights issue to fund a major round of capital investment in energy infrastructure
5 mins ago

Grenfell police probe to last at least until end of 2025

19 companies and 58 individuals could eventually face charges
10 hours ago

Mace confirmed on £100m London office retrofit

Work underway on Helical's 100 New Bridge Street job near Ludgate Circus
21 hours ago

Wylfa chosen for next big nuclear power station build

Government names Anglesey site for a large-scale gigawatt nuclear power plant.
24 hours ago

Bowmer & Kirkland trading profit halves

Contractor buys HVAC specialist Adcock despite challenging market
1 day ago

Piling specialist Van Elle plans further job cuts

Piling specialist plans further cost savings in face of lower demand
1 day ago

Civils contractor A Catlow files administration notice

High voltage cable specialist lodges court notice
1 day ago

Green light for ARC Oxford lab campus

Work to start later this year on £40m Ascent building job
1 day ago

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
2 days ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
2 days ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
2 days ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
2 days ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
2 days ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
2 days ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
2 days ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
2 days ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
2 days ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
2 days ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
3 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
3 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
3 days ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
3 days ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
3 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
6 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
6 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
6 days ago

Contractor services