M&E contractor says strategy helped return firm to black last year
NG Bailey has said it is moving away from fixed-price schemes and negotiating deals direct with the end client as the firm returned to the black last year after losses on lump sum jobs helped blow a hole in its accounts the 12 months before.
The M&E specialist said it turned in a record performance with turnover hitting the 拢600m mark for the first time, a rise of 13% in the year to 1 March 2024, while pre-tax profit came in at just under 拢11m from last year鈥檚 拢25m loss which included a 拢7m hit on its investment in failed car battery manufacturer Britishvolt.
In a note accompanying the accounts, the firm said its engineering division, which had previously been hit by project delays, inflation and firms going bust, said 鈥渁 renewed focus on quality margins and risk management鈥� helped return the division to profit.
It added this had been helped by a 鈥渟trategic shift in the mix of work away from fixed-price lump sum contracts and towards commercially benign contract structures.
鈥淭here is a growing proportion of arrangements directly with the end client rather than through a main contractor.鈥�
The firm, which last month saw chief operating officer Jonathan Stockton take over from the retiring David Hurcomb in the chief executive鈥檚 role, said the average number of employees was up 6% to 3,400 with its order book at the year-end up 拢100m to 拢1.3bn.
It said it had paid down its debt from 拢11m to zero while its cash and investments stood at 拢70m, down from 拢83m.
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