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M&E specialist contractor NG Bailey is targeting turnover of 拢500m within the next three years, the firm said after reporting results for the year to February 2015 showing revenue of 拢365m.

NG Bailey chief executive David Hurcomb (pictured) said the firm, which managed to nearly double its operating profit in the year despite its overall pre-tax profit falling sharply on lower investment income, was 鈥渘ot chasing turnover,鈥� but it was nevertheless 鈥渓ower than we鈥檇 like it to be鈥�. He said: 鈥淲e refreshed our business plan last year and 拢500m is where we want to get to, by around 2017/18.鈥�

Despite this ambition, the 拢365m turnover was a decline from the 拢380m recorded in 2014, which Hurcomb blamed on NG Bailey鈥檚 decision to reduce its exposure to the volatile London market, as well as a reduced volume of rail work following the well-publicised problems at Network Rail.

Success at Hinkley justifies our decision to invest in a JV [with Balfour Beatty]

David Hurcomb, NG Bailey

The firm, which was last week confirmed as preferred contractor in joint venture with Balfour Beatty on EDF鈥檚 拢460m M&E package for Hinkley (see page 12), reported an operating profit of 拢2.3m, up 92% from 拢1.2m last year despite 拢700,000 in restructuring costs.

However, the company鈥檚 pre-tax profit for the year was down 39% to 拢4.2m, because of a sharp decline in income from the firm鈥檚 stock market investments, which fell from 拢5.7m to just 拢2.2m.

Hurcomb said the rise in operating profit was a result of the firm鈥檚 decision to broaden its business to infrastructure M&E as well as traditional buildings work, resulting in the Hinkley win, and to grow facilities management and IT networking businesses. He said: 鈥淲e鈥檙e delighted at the success atHinkley, because it justifies our decision to invest in a JV [with Balfour Beatty] five years ago, and hopefully can get us going for the next 25 years.鈥�

The FM and IT businesses turn over 拢65m and 拢60m respectively.

Hurcomb said the decision to bid more selectively for work in London was because, despite the buoyant new-build market, there was 鈥渟till a lot of pain鈥� for contractors, and the volume of staff recruitment and poaching made it a very risky environment. Hurcomb added that NG Bailey still had a number of poor performing 鈥減roblem jobs鈥� on its books, but that these had reduced in number from 鈥�10 or more鈥� to 鈥渓ess than five鈥�.