NG Bailey, a prominent building services contractor, has marked its return to financial stability, transforming a prior £25 million pre-tax loss into a substantial profit. The fiscal year ending March 2024 highlighted several significant developments in its operational and financial strategies. Under new leadership, the company’s strategic realignment has played a crucial role in this positive transition. With a fortified order book and a focus on emerging markets, NG Bailey is poised for continued success.
- NG Bailey has reported a notable turnaround, transforming a previous year’s £25m pre-tax loss into a profit of nearly £11m.
- The company’s annual turnover increased to £600m, significantly up from the previous year’s £532m.
- New CEO Jonathan Stockton, who assumed leadership in June 2024, has been instrumental in this directional shift.
- The Services division has driven growth, achieving record profitability, complemented by a revitalised Engineering division.
- A strong future outlook is anchored by a growing order book and expanding presence in energy and decarbonisation sectors.
For the fiscal year concluding on 1st March 2024, NG Bailey reported an impressive return to profitability, boasting a pre-tax profit of £10.7 million compared to a substantial loss of £25 million the previous year. This notable recovery is underpinned by an increase in annual turnover, which rose to £600 million from £532 million in 2023. Such financial gains mark a pivotal change in fortunes for the company. Underpinning this success is the strategic leadership shift, with Jonathan Stockton taking over as Chief Executive Officer on 1st June 2024. Stockton’s tenure is characterised by a reinforced emphasis on governance and innovative business strategies, critical in navigating the company through a challenging market landscape.
Integral to NG Bailey’s resurgence is the robust performance of its Services division, which achieved record profitability levels for a second consecutive year. The division’s success underscores the firm’s strategic diversification, catering to sectors such as building construction, infrastructure, and renewable energy. Contributing to the company’s improved financial health is the Engineering division, which returned to profitability due to a renewed focus on quality margins and risk management, led by a revitalised leadership team.
The company’s order book has burgeoned to £1.4 billion, reflecting a striking increase from £1.3 billion the prior year. This growth, coupled with the completion of legacy contracts adversely impacted by the Covid-19 pandemic and inflation, positions NG Bailey favourably for future endeavours. The company’s fiscal stability is further reinforced by resilient net assets valued at £129 million, alongside cash and investments totalling £70 million, and the absence of external debt, which collectively enhance its operational agility.
CEO Jonathan Stockton, reflecting on the company’s trajectory, remarked, “NG Bailey is in a strong position as we continue to execute our diversified business strategy, the success of which is evidenced by our return to profitability even in the face of tough trading conditions.” This statement underpins the firm’s resilience and market adaptability, as it capitalises on a burgeoning pipeline within recession-proof markets such as energy and decarbonisation. With half of the group’s metrics anchored in its Services division, the company anticipates further growth, particularly in high-demand areas such as renewable connections and electric vehicle charging infrastructure.
NG Bailey’s strategic leadership and strong market positioning outline a clear path to sustained growth and resilience.
