NG Bailey sustains profits in face of fall in turnover
NG Bailey’s has reported a 23% fall in turnover for the year to the end of February 2010, with a pre-tax profit of £19.9 million. Nimble Thompson, chairman of this largest privately owned building-services provider, says, ‘Although the results are extremely pleasing, this level of profit is unlikely to be repeated in the near future, and, indeed, we approach the market with caution as the recession continues to bite.’
There were two reasons for the level of profit enjoyed. One was some of the company’s most successful longer-term projects coming to a financial close, resulting in profits being taken in according with recognised accounting policies. The second was a revaluation of the investment portfolio, which returned to a £6.7 million profit compared to a £6.7 million loss the previous year — a swing that was not expected quite so soon.
Nimble Thompson expects sales to remain at a similar level for at least the next couple of years, leading to the workforce being reduced by 7%.
The company’s final-salary pension scheme has also been closed.
For the future, the board has set aside substantial investment for 2010/11 to help improve market penetration, capitalise on technical expertise and target new and emerging sectors. The organic development of core businesses that have been the cornerstone of the company’s long-term success will be maintained.