NG Bailey, the UK’s largest independent engineering, IT and facilities services group, has tripled its operating profit over the past year (year ending 26th February 2016) to £6m and, increased its sales by 12 per cent, to £408m.
The company’s secured order book rose 14 per cent to a record £673m, which, alongside having no third party borrowings, net assets of £116m and cash and investments standing at over £75m, puts the company in a very solid financial position.
The group attributes its strong performance to the success of its diversification strategy. Over the last four years, NG Bailey has placed an emphasis on better balancing its portfolio of work across services (IT, energy and facilities management), large-scale infrastructure projects and traditional building construction.
During the period the company won £500m of new work. This included significant contracts with Land Securities for both its Retail portfolio and, to help it reduce energy use within a number of its commercial properties. In addition, NG Bailey was awarded a five-year, £50m+ contract with Fujitsu to support its work to transform the delivery of information and communication technology across the Ministry of Defence.
During the year it also delivered a number of noteworthy projects, including one of the world’s most ‘intelligent’ stadia – the SSE Arena in Belfast – and an innovative, sustainable, combined heat and power link, the first of its kind in Europe, at Birmingham New Street station.
The growth has been achieved alongside a £2m investment in sectors, such as energy management and smart buildings, a continued annual investment of £3m in the training and development of its people.
The success is also down to continued cost control measures.
David Hurcomb, chief executive of NG Bailey, said: “Five years ago we embarked on a strategy to diversify our business and achieve an equal split of work across services, infrastructure and building construction. Our operating performance demonstrates that our strategy has worked.
“Our focus now is to retain this split. Given our industry-leading engineering expertise and our focus on exceptional customer service delivery, I believe this is achievable.
“Underpinning our operating performance is our commitment to health and safety. We have an industry-leading health and safety record. Our Accident Incident Rate (AIR) is five times lower than the industry average, and this year we have seen our lowest RIDDOR level for 30 years.
“Our solid financial position, and our ability to continue to invest in the company, puts us in a good position to weather any economic storm that may arise from the recent Brexit vote.”
Kevin Whiteman, chairman of NG Bailey, added: “This is a strong set of results and we are in a strong financial position, with the resources to continue to selectively invest in growth areas and in our people to provide better returns for shareholders in the longer-term.
“As an independent business we understand that long-term success is about being both a profitable and responsible business, which is why our One Approach sustainability strategy is also core to our continued growth.”
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