Rising costs on several jobs significant, M&E contractor admits, as firm introduces hardship fund to help staff with cost of living
Losses on fixed price jobs and a near 拢7m hit on its investment in failed battery manufacturer Britishvolt sent NG Bailey tumbling into the red last year with the firm racking up a 拢25m pre-tax loss.
The firm lost 拢6.8m on its investment in Britishvolt, the firm start-up that was planning to build a new battery plant in Northumberland but which sank into administration at the start of the year.
And it said a 鈥渟mall number of engineering fixed price contract, which have suffered from unprecedented inflationary pressures, delays and some supply chain failures, have cost the business significantly鈥�.
It said the impact on its cash position of these jobs, which it declined to name, were now 鈥渓argely behind us鈥�
The problems meant the firm, which has now filed its accounts at Companies House, fell to a 拢25m pre-tax loss in the year to 3 March from a 拢3m profit last time. Revenue was up 6% to 拢532m.
It said that it was taking more time to weigh up whether to bid for jobs or not and added: 鈥淲e are being cautious in our growth plans to ensure we don鈥檛 take on significant risk. Our 鈥榖id no bid鈥�, estimation and procurement processes have been tightened and are highly selective to ensure we win work at margins commensurate with the risk.鈥�
The firm said this year鈥檚 annual pay rise had been weighted towards lower paid workers and it had introduced a hardship fund to support hard up staff with grants or wage advances. It has also introduced a staff discount scheme on day-to-day expenses.
NG Bailey鈥檚 order book at the year-end stood at 拢1.3bn, a rise of 拢100,000 on last time, with net cash and investments up to 拢83m, from 拢79m.
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