A SPECIALIST Bradford-based division of construction and engineering group NG Bailey is set for significant growth as the group continues to diversify.
Doubling turnover at NG Bailey Offsite in Oakenshaw to nearly £20 million over the next two years is key to the Ilkley-based group's strategy and will create jobs in Bradford, according to chief executive David Hurcomb.
He said: "Demand for the services provided by our Bradford offsite operation for complex construction projects is growing and we are looking to double turnover to around £18-20 million over the next two years, which will also create new employment opportunities."
NG Bailey Offsite, which designs and produces modular buildings for erection on site, employs around 90 people at a 65,000 sq ft base and a welding plant at Drighlington.
Mr Hurcomb said NG Bailey had achieved strong results in the year to February 27.
The UK’s largest independent engineering, IT and facilities services group boosted underlying operating profit by 43 per cent to £3 million.
Pre-tax profit on ordinary activities fell from £6.9 million to £4.2 million due to lower returns on investments by the company, which is debt free.
Operating profit growth, achieved while investing £2.7 million in new services, was underpinned by the goal in making the business less reliant on
traditional building work.
More emphasis was being placed on energy and facilities management - where clients include Bradford-based Morrisons - along with IT and engineering construction on large infrastructure projects.
The success of the diversification strategy was reflected in a 20 per cent growth in sales within Bailey's services businesses.
Group sales fell by four per cent to £365 million- but Mr Hurcomb said Bailey planned to grow turnover to around £500 million in the next three years..
NG Bailey’s secured order book increased from £550 million to £590 million, with the company named as preferred bidder on a further £140 million of work – taking its year-end forward order book to a record £730 million.
Mr Hurcomb said the inclusion of the Balfour Beatty Bailey joint venture as a preferred bidder for £460 million of work on the proposed Hinckley Point C nuclear power station in Somerset lifted the potential forward order book to more than £1billion, paving the way for more work in the nuclear energy sector.
David Hurcomb said: “This is a strong result. It’s still tough out there, particularly in building construction. Margins remain under pressure across the supply chain, which is why we seek to avoid bidding for high-risk, low margin work.
“That said, all of our divisions performed profitably, which gives us a strong platform for developing a long-term, sustainable, business. "
Source: The Telegraph and Argus
