Rising costs on several jobs significant, M&E contractor admits, as firm introduces hardship fund to help staff with cost of living

Losses on fixed price jobs and a near 拢7m hit on its investment in failed battery manufacturer Britishvolt sent NG Bailey tumbling into the red last year with the firm racking up a 拢25m pre-tax loss.

The firm lost 拢6.8m on its investment in Britishvolt, the firm start-up that was planning to build a new battery plant in Northumberland but which sank into administration at the start of the year.

And it said a 鈥渟mall number of engineering fixed price contract, which have suffered from unprecedented inflationary pressures, delays and some supply chain failures, have cost the business significantly鈥�.

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NG Bailey said spiralling costs on fixed price jobs had hit the firm鈥檚 bottom line

It said the impact on its cash position of these jobs, which it declined to name, were now 鈥渓argely behind us鈥�

The problems meant the firm, which has now filed its accounts at Companies House, fell to a 拢25m pre-tax loss in the year to 3 March from a 拢3m profit last time. Revenue was up 6% to 拢532m.

It said that it was taking more time to weigh up whether to bid for jobs or not and added: 鈥淲e are being cautious in our growth plans to ensure we don鈥檛 take on significant risk. Our 鈥榖id no bid鈥�, estimation and procurement processes have been tightened and are highly selective to ensure we win work at margins commensurate with the risk.鈥�

The firm said this year鈥檚 annual pay rise had been weighted towards lower paid workers and it had introduced a hardship fund to support hard up staff with grants or wage advances. It has also introduced a staff discount scheme on day-to-day expenses.

NG Bailey鈥檚 order book at the year-end stood at 拢1.3bn, a rise of 拢100,000 on last time, with net cash and investments up to 拢83m, from 拢79m.

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