Business rethink continue to pay off as NG Bailey profit heads up

NG Bailey said moving away from fixed-price jobs is continuing to pay off with turnover and profit both rising last year.

The M&E specialist, which was set up in 1921, said income was up 10% to £707m in the year to 27 February with pre-tax profit up 47% to £26m.

Two years ago, the firm said it was moving away from fixed-price schemes and negotiating deals direct with the end client.

Chief executive Jonathan Stockton said: “Our positive financial performance is rooted in a relentless focus on managing risk and selective approach to the projects we take on.”

The firm’s year-end order book was up £100m to £1.7bn with the firm saying its focus was on sectors where the barriers to entry were higher such as defence, healthcare, rail, decarbonisation, energy, including nuclear and electricity, and water.

NG Bailey also said it had created a new role of chief AI officer “to provide clear leadership and governance over the adoption of AI across the Group. This role will ensure that new technology solutions are analysed and adopted in a structured and responsible way.”

Year-end cash and investments was up from £92m to £116m with the firm employing 3,650 staff across 31 locations from Aberdeen to Plymouth.