Engineering group breaks £1bn order book milestone
Ilkley-headquartered engineering group NG Bailey has seen its order book break the £1bn milestone in the last year but its turnover drop £19m, which is says is due to the changing construction sector.
For the 12 months ending 2 March 2018, operating profits, before exceptional items, rose from £12m to £13.7m. Pre-tax profits have gone from £18.6m to £19.6m. However, turnover dropped £19m from £500m to £481m, which the firm said was a due to the impact of changes across the construction sector.
The group’s forward order book rose from £902m to £1.4bn, which it mainly attributed to its acquisition post year-end of Freedom Group.
David Hurcomb, chief executive of NG Bailey, said: “We are focused on achieving sustainable growth and leadership in our core markets, and we believe there are some exciting opportunities in defence, energy, data centres and rail over the next year. However, we cannot afford to be complacent. We are operating in what is still a challenging environment for construction, with many major contractors feeling the impact.
“Despite this, we are making substantial progress in transforming the shape of the business to ensure we continue to deliver long-term success and are well placed to manage the challenges ahead.
“We have a strong balance sheet and the resources to selectively invest in growth areas. Our people, systems and processes provide a solid platform for the business. This is supported by the continued strength of our forward order book.”
In the last year the Group has been involved in some significant projects, including the completion of the mechanical and electrical services at London Bridge, featuring the UK’s most advanced rail control centre; cementing Liverpool’s future as a world-class life science hub with a new £25m life sciences centre, and the second new-build on Newcastle’s £350m Science Central development to promote Newcastle globally as a city of science.
High-profile contracts have also been secured with Liverpool Football Club, Bloomberg and Manchester Engineering Campus Development (MECD) – the largest construction project ever undertaken by the University of Manchester.
Hurcomb added: “Whilst there is continued economic uncertainty surrounding Brexit and the impact it will have on the industry, our solid financial position, and our ability to continue to invest in the company, puts us in a good position to weather any economic storm.
“Our success has been built on a platform of industry-leading expertise and exceptional customer service and our continued investment in people, technology and training makes us well-placed to differentiate our business in what remains a very competitive market.”
Kevin Whiteman, Chairman of NG Bailey, added: “We have shown consistent growth for the last three years, and our financial strength, with net assets of £139m, means we offer customers the strength and stability they need in their supply chain. And being able to offer this over the project life cycle is an attractive proposition for customers in this current uncertain trading environment.”
