黑洞社区

The UK鈥檚 largest private M&E contractor NG Bailey has returned to profit and grown its revenue by 11%.

The Yorkshire-based firm posted revenue of 拢464m for the year ending 24 February 2012, up 11% on 拢419m the previous year, in results disclosed exclusively to 黑洞社区.

The company returned a pre-tax profit of 拢7.2m after slumping to a 拢4.2m loss the year before.

The improved results came as NG Bailey revealed two major contract wins - pre-construction work on Costain鈥檚 拢800m revamp of London Bridge station and M&E work on a 拢150m 鈥渕ega dairy鈥� for Arla Foods in Aylesbury, Buckinghamshire.

The latter contract is worth 拢60m to NG Bailey and will involve the delivery of 拢30m worth of M&E work on the 70-acre dairy and the running of the facility for 15 years, worth 拢30m.

Chief executive David Hurcomb (pictured) attributed the company鈥檚 financial turnaround to 鈥渆xpansion in the service and infrastructure sectors鈥�.

NG Bailey鈥檚 services business - which include facilities management, IT consultancy and offsite manufacturing - now makes up 17% of the firm鈥檚 turnover and 25% of its pre-tax profit.

Hurcomb said the firm鈥檚 ambition was to grow the services business to a third of its turnover within five years.

While all NG Bailey鈥檚 divisions turned a profit, Hurcomb admitted the building services arm - which still makes up the bulk of the firm鈥檚 turnover - is only making a 鈥渕arginal鈥� profit.

He said: 鈥淣G Bailey today is making no money from the building services piece - its making money from the services division鈥�.

He said he did not expect margin improvement in building services 鈥渇or a year or two鈥�.

But the success of its services business - particularly in winning longer-term facilities management work - helped the company clock up a record 拢0.75bn order book for the period.

The firm was caught up in one of the largest industrial relations disputes for over a decade earlier this year, after it and six other M&E contractors backed the proposed BESNA changes to workers鈥� pay and conditions.

Hurcomb said contractors and unions were still in a 鈥渉ealing鈥� period after all seven firms abandoned the BESNA plans in February, following five months of protests.

He said the firm still believed the M&E wage agreements needed 鈥渕odernising鈥� due to increased competition from European firms and developments in technology.

He confirmed NG Bailey is involved in the Industry Development Forum of contractors and trade federations that is working on new proposals.