Building services contractor NG Bailey has seen its operating profit treble in the last year, while its turnover grew by 12%.
Up to the year ending February 26, the firm’s operating profit reached £6 million on a £408 million turnover, which was a margin of 1.5%.
At the end of the year, the company’s secured order book increased by 14% to a record £673 million and, with no borrowings from third parties, investments of over £75 million and net assets of £116 million, the directors believe that the company is in a strong place financially.
In the last four year period, NG Bailey has pursued a strategy of diversification which has seen it balance its portfolio of work across services (IT, energy and facilities management), large-scale infrastructure projects and traditional building construction.
The last financial year saw the company win £500 million worth of new work, which included significant contracts with Land Securities for its real portfolio and to help it cut down on its energy use within several of its commercial properties.
Furthermore, the firm picked up a £50 million contract with Fujitsu over the next five years to support its work in transforming communication technology and the delivery of information throughout the Ministry of Defence.
There is also a £460 million joint venture contract with Balfour Beatty in the pipeline for the electrical package for EDF’s proposed Hinkley Point C nuclear power plant if it does eventually get the green light.
David Hurcomb, Chief Executive at NG Bailey, commented: “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.
Hurcomb added that the company is now focussed on retaining this split and that given their industry-leading expertise and focus on high quality customer service, this is achievable.