The M&E specialist had been a subcontractor on the Midland Metropolitan Hospital job
NG Bailey has been forced to write-off 拢2.1m due to Carillion鈥檚 collapse, according to the contractor鈥檚 for the 12 months to 2 March.
The specialist contractor, who landed a 拢80m deal to deliver MEP services to the ill-fated Midland Metropolitan Hospital (pictured) job in 2015, said Carillion鈥檚 collapse had resulted in the firm taking a financial hit.
The company said: "On 15 January 2018, Carillion plc filed for compulsory liquidation. As a result of the Carillion liquidation, NG Bailey Limited has recognised a 拢2.1m of exceptional costs for irrecoverable contract costs."
The notice, which said an early works contractor was set to be on the job from 11 September, also laid out a number of jobs that would be carried out by exisiting subcontractors. NG Bailey was not among them.
Despite the hit from Carillion, the M&E specialist posted a strong set of results, with the boss of the West Yorkshire-headquartered M&E contractor, saying his firm was well placed to weather any commercial headwinds after the UK leaves the EU next March.
Speaking as the Ilkley-based firm posted a 5% rise in annual pre-tax profit, NG Bailey鈥檚 chief executive David Hurcomb said that while the business was focused on achieving sustainable growth and a market leading position in its core markets it could not afford to be complacent.
鈥淲e are operating in what is still a challenging environment for construction, with many major contractors feeling the impact.鈥�
Hurcomb said there was 鈥渃ontinued economic uncertainty surrounding Brexit and the impact it will have on our industry鈥�, although his business was 鈥渋n a good position to weather any economic storm鈥�.
Pre-tax profit came in at 拢19.6m, up 5%, as the group reported turnover for the year to 2 March 2018 of 拢481m, down 4%.
The firm, which bought the electricity distribution business the Freedom Group in April and recently finished M&E services at the revamped London Bridge railway station, said its operating profit before exceptionals was 拢13.7m, up 14%.
The deal to buy the Freedom Group had helped push the firm鈥檚 overall order book to around 拢1.4bn, it added.
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