M&E specialist carrying out more work for end-client as it moves away from fixed-price jobs
NG Bailey said a business rethink is beginning to pay off with the firm posting its highest ever turnover and a two-thirds increase in pre-tax profit.
The M&E specialist, which was set up in 1921, said income was up 10% to 拢662m in the year to 28 February with pre-tax profit up 65% to 拢17.7m.
Last year, the firm said it was moving away from fixed-price schemes and negotiating deals direct with the end client.
In a statement, the firm said: 鈥淣G Bailey continues to prioritise markets with high barriers to entry that are more resilient during economic downturns, such as defence, healthcare, rail and nuclear which helps spread risk and gives the Group more stability overall.鈥�
It said its order book had grown 拢200m to 拢1.6bn 鈥渨ith an increasing proportion of work directly with end clients, alongside work through its preferred main contractors鈥�.
NG Bailey said its net assets at the year-end were up 8.5% to 拢141m.
The firm, which last May saw chief operating officer Jonathan Stockton take over from David Hurcomb in the chief executive鈥檚 role, said the average number of employees edged up 2% to 3,468.
Stockton added: 鈥淭his positive financial performance is rooted in our relentless focus on managing project risk and prioritising bottom line returns over top line revenue growth. Our criteria for selecting the projects we take on is stringent across the Group, which we see as critical in a resource constrained market.鈥�
The firm has launched an initiative called Journey to 2030 which it said 鈥渨ill see it undertake a programme of targeted investment over the next five years as it looks to deliver on its ambitious growth plans鈥�.
It added that it has merged its Engineering, Facilities Services and EV Infrastructure businesses into a new division called Built Environment.
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