NG Bailey credits services arm for return to profit

NG Bailey has reported a return to profitability after another strong performance from the group’s Services business.  

Turnover for the year ended 1 March 2024 was £600 million, up from £532 million in the previous year, with an underlying operating profit of £11.2 million (FY2023: £17.3 million loss). 

The group’s order book remains healthy, increasing to £1.4 billion from £1.3 billion in FY2023. 

Its balance sheet showed net assets worth £129 million, up from £121 million in the prior year, with cash and investments of £70 million (FY2023: £83 million) and, since the end of March last year, no external debt.  

Services and Engineering  

Areas of growth, including in its order book, was driven by its Services division, which delivered record profitability for the second consecutive year, with all three business streams – Facilities Services, IT Services, and Freedom – increasing turnover, and is now primed for future growth. 

The Engineering business also returned to profitability in the financial period, with leadership focused on risk management, quality margins, and renewed governance. Nuclear, aviation, education, defence, healthcare, custodial, rail, and offsite construction will continue to be key markets for the Engineering division, it said. 

The group has also earmarked digitalisation and systemisation of its systems for “significant” investment over the next 18 months, as well as staff learning and development programmes. 

A word from the top 

Former chief operating officer (COO) Jonathan Stockton, who became chief executive on 1 June following David Hurcomb’s retirement after 14 years at the helm, said: “NG Bailey is in a strong position as we continue to execute our diversified business strategy, the success of which is evidenced by our return to profitability even in the face of tough trading conditions. 

“This is testament to our high-quality order book and our market leading capability to provide services across building construction, infrastructure, and services, alongside the quality, expertise and commitment of our teams and experienced management. 

“With a growing pipeline of work in recession-proof markets and strong credentials in the energy and decarbonisation sectors, we have confidence that we will be able to successfully deliver our growth plans, with a clear route to pre-pandemic levels of trading and beyond.” 

Stockton added: “We remain committed to being a responsible business by focusing on paying our supply chain on time and are proud that we are consistently a top performer amongst our peers in this regard.  

“This is in contrast to the wider industry where a culture of late payments and underpayments remains prevalent.” 

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