NG Bailey Media Resources
NG Bailey reports record turnover
NG Bailey reports record turnover
NG Bailey has announced a record turnover of £600m for the year to 27th February 2009 – an increase of 14.3 per cent compared to the previous year.
“This is the first time, in our 88-year history, that we’ve achieved a turnover of over £600m. It is a reassuring achievement in this difficult market and one that confirms our strong market share and our position as a leading player in the industry,” comments Mark Andrews, chief executive of the organisation.
He continues: “We are in a strong position to face the current market uncertainties and as a privately-owned company we remain extremely well financed, which in difficult times, gives our clients and partners reassurance.
“This record figure, coupled with a moderate trading profit, is as a result of us working on some significant projects during the year, including our largest ever contract for the St Helens and Knowsley Hospitals (NHS) Trust. This is exactly the sort of project where we excel. By engaging early and working as a supply chain partner we can provide cost savings for our customers and end clients.
“Our building services division performed well across the country, particularly in the North. Our managed services businesses have undergone a restructure and under the guidance of a new managing director and largely new management team, are on the way to addressing adverse trading conditions.”
Despite record trading figures and a moderate operating profit, the company’s overall profit performance has been adversely affected by the unprecedented global economic downturn in the final half of the year, with the company reporting an annual pre-tax loss of £10.8m, compared to a profit of £7.9m in the previous year.
NG Bailey’s balance sheet remains one of the strongest in the industry and the company remains confident that its long-term strategy of ‘For Life in Buildings’ – taking an integrated, ‘whole-life’ approach to buildings, is the right one, and one that will set it apart from its competitors in what is now a fiercely competitive marketplace.
Mark comments: “Our strategy has never been as important. It brings together a combination of building services, system integration and building performance expertise that in turn allows us to deliver improvements to the overall environmental performance of a building, and therefore its long-term asset value, as well as impact, for the better, the cost of running that building over its life span.
“This approach takes into account the increasing cost of energy and environmental responsibility, which makes our role more critical in managing the cost and determining the performance of buildings at a specification level.”
He continues, explaining the reasons for the loss: “The turmoil in the stock markets has had a direct impact on our investment portfolio. Although we took a prudent approach to adjusting and reprofiling our investments in line with what was happening in the markets, it was impossible to safeguard the value of the entire portfolio. The stock market also affected the value of the company’s pension scheme, taking it from a £6.3m surplus to a deficit of £20.9m. Our commitment to our employees saw us make a provision to top up the scheme – at a cost to us of £5.8m, and we have already mirrored this commitment in the 2009/10 financial year by topping it up by a further £4.6m.
“These factors, along with a goodwill write-down in terms of our recently acquired ICT businesses are the reasons for the loss. The write-down saw us readdress the value of these businesses, which like many firms operating in technology markets, have been sharply affected by the instability of the financial services sector.”
NG Bailey enters the 2009/10 year with work secured running at 70 per cent and despite the current climate, is optimistic for the year ahead.
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