NG Bailey has tripled its operating profit over the past year to £6m and, increased its sales by 12 per cent, to £408m.
The company’s secured order book rose 14 per cent to a record £673m, which, alongside having no third party borrowings, net assets of £116m and cash and investments standing at over £75m, puts the company in a very solid financial position.
David Hurcomb, chief executive of NG Bailey, said: “Five years ago we embarked on a strategy to diversify our business and achieve an equal split of work across services, infrastructure and building construction. Our operating performance demonstrates that our strategy has worked.
“Our focus now is to retain this split. Given our industry-leading engineering expertise and our focus on exceptional customer service delivery, I believe this is achievable.
“Underpinning our operating performance is our commitment to health and safety. We have an industry-leading health and safety record. Our Accident Incident Rate (AIR) is five times lower than the industry average, and this year we have seen our lowest RIDDOR level for 30 years.”
David Hurcomb, told Smart Builodings Magazine, "We see ourselves a smart engineering business that is concentrating on the built environment. We are working with companies such as Cnet so that we can train engineers and apprentices to be up to date with IP technology. We know that there may be choppy waters ahead and there will be challenges, but these strong results mean that we can look strategically ahead and can plan for the future."
Speaking to Smart Buildings Magazine, Bob Dunnett, managing director of the company's IT Services business, said, "One key issue for us in terms of smart buildings is IP security, and we have seen recent examples of companies being hacked via building devices. We are working closely with our partners to ensure that the contracts we provide are secure. We know that smart buildings will be going in a number of directions and we want to create solutions for clients and work towards what our clients need."
The group attributes its strong performance to the success of its diversification strategy. Over the last four years, NG Bailey has placed an emphasis on better balancing its portfolio of work across services (IT, energy and facilities management), large-scale infrastructure projects and traditional building construction.
During the period the company won £500m of new work. This included significant contracts with Land Securities for both its Retail portfolio and, to help it reduce energy use within a number of its commercial properties. In addition, NG Bailey was awarded a five-year, £50m+ contract with Fujitsu to support its work to transform the delivery of information and communication technology across the Ministry of Defence.
During the year it also delivered a number of noteworthy projects, including one of the world’s most ‘intelligent’ stadia – the SSE Arena in Belfast – and an innovative, sustainable, combined heat and power link, the first of its kind in Europe, at Birmingham New Street station.
The growth has been achieved alongside a £2m investment in sectors, such as energy management and smart buildings, a continued annual investment of £3m in the training and development of its people.