M&E specialist records highest-ever turnover

Mechanical and engineering (M&E) contractor NG Bailey has seen its pre-tax profit soar by 65 per cent and recorded its highest-ever turnover.

The Leeds-based family firm reported a £17.7m pre-tax profit in its latest accounts for the 12 months to 28 February this year.

The previous year saw it turn a £25m loss into a £10.7m profit.

Revenue in the latest period rose by 10 per cent from £600m to £662m – the highest in NG Bailey’s 104-year history. Engineering work accounted for £346m and infrastructure services the rest.

The firm, which is 33rd in the CN100 ranking and second in the CN Specialists M&E index, recorded a bumper order book worth £1.6bn – rising from £1.4bn the previous year.

“The order book has a healthy mix of project work and predictable, recurring-income contracts,” it said.

The financial results follow Jonathan Stockton’s first year in post as NG Bailey’s chief executive and the launch of the group’s Journey to 2030 strategy, which will see it undertake a programme of targeted investment.

“It has been a year of stability and progress at NG Bailey, with record sales alongside improved profitability and cash generation,” Stockton said.

“This positive financial performance is rooted in our relentless focus on managing project risk and prioritising bottom-line returns over top-line revenue growth. 

“Our criteria for selecting the projects we take on is stringent across the group, which we see as critical in a resource-constrained market.”

The firm said it is prioritising markets that are more resilient during economic downturns, such as defence, healthcare, rail and nuclear.

“Our Journey to 2030 strategy builds on the heritage and strengths of NG Bailey, with a commitment to invest for the long term, allowing us to capitalise on the significant opportunities in our marketplace, including selective low-risk strategic acquisitions that can complement organic growth by adding capability, geography and resilience,” Stockton added.

NG Bailey’s employee number rose from 3,411 to 3,468, while its wage bill increased from £177.4m to £187m.

The accounts showed its cash and deposits went up by 71 per cent from £27.3m to £46.9m, and the firm is free of bank debt.

Its contracts have included £1.8bn worth of work at Hinkley Point C, a £190m contract to refurbish government buildings in Manchester and a £280m office build in London.