Engineering and services provider NG Bailey has reported a 3 per cent increase in turnover to £573 million for the year ended February 28.
Underlying operating profit also rose from £19.4 million to £19.8 million and an ongoing strong financial position gives the group confidence for the future, it states.
Following the Covid-19 outbreak in March, NG Bailey says it “adapted its business strategy in response to the wider situation, working with employees, customers, and supply chain partners to ensure safe new working arrangements were introduced”.
From an operational perspective, it states, most of the group’s projects and sites have remained open safely, in line with government guidance and in collaboration with its partners and stakeholders. Work continues to remobilise activities that were paused.
CEO 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.
“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.
He said the group has had to reduce its employee headcount by around 8 per cent because of the lower workload. However, its expectation is that despite disruption from Covid-19 and Brexit it 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.”
Hurcomb said both divisions had played key roles in delivering a wide range of projects to support the UK Government’s response to the pandemic, including essential work on the UK’s Nightingale Hospital programme.