Strong results but tough environment for engineering and services company

Ilkley-based engineering and services business, NG Bailey, has recorded robust results for the year ended February 2020 despite having to cut staff numbers by 8%.

And the company adds that its ongoing strong financial position, including a balanced pipeline of work across resilient sectors, gives it confidence for the future in spite of COVID-19.

For the year ended February 28, 2020, NG Bailey reported a 3% increase in turnover to £573m, with underlying operating profit also increasing from £19.4m to £19.8m.

Chief executive, David Hurcomb, said: “With a strong pipeline of opportunities and continued commitment from the Government to defence and infrastructure spending, including exciting emerging sectors such as battery storage and manufacture, NG Bailey is confident it is structured to get through the current crisis and return to the levels of profitability of recent years in the medium term.

“We are well placed to continue to play a significant role in the long-term opportunities across UK defence and infrastructure.

“These sectors will play an important role in rebuilding the UK economy and are where there is positive Government commitment.”

From an operational perspective, the majority of the Group’s projects and sites have remained open safely during the pandemic. Work continues to remobilise activities that were paused.

Hurcomb added: “COVID-19 has undoubtedly brought significant challenges and like all businesses we face a new reality.

“We are experiencing reduced revenues currently and expect this to continue for some time as investments and spending by customers is deferred.

“As a result, we sadly have had to reduce our headcount by around 8% to match this lower workload.

“However, despite the expectation that ongoing disruption from COVID-19 and Brexit uncertainties will continue to make trading conditions very tough for some time, we are confident we will emerge stronger.

“We believe our strategy of achieving a balance in the business across our Engineering and Services divisions, coupled with our pipeline of work and our strong balance sheet, puts us in a strong position to face any challenges that lie ahead.”

Both NG Bailey’s Engineering and Services divisions have played key roles in delivering projects to support the UK Government’s response to the pandemic, including essential work on the Nightingale Hospital programme.

Hurcomb said: “I am proud of the response of our people to the pandemic, working together as one team to adapt and introduce new ways of working during these challenging times.

“I would like to thank them all for their ongoing hard work and dedication.”