After six months in the job, NG Bailey chief executive David Hurcomb has completed a strategic review and used an interview with the Yorkshire Post to set out his vision for the company.
Mr Hurcomb said that NG Bailey’s over-reliance on construction had left it “very, very exposed” when the recession hit. Turnover fell from £600m in 2008/09 to £464m in £2009/10. Profit after tax of £13.5m last year, after an £11m loss the year before, was only because of a revaluation of its investment portfolio and taking a profit on some of its most successful projects coming to a financial close.
Mr Hurcomb, formerly of Carillion and Mansell, warned that the building industry was now going through a double-dip recession, with private sector activity failing to offset public spending cuts. He said that fewer projects and downward pressure on gross margins would hit profitability in 2010/11, and 2011/12 would continue to be difficult.
“It’s going to be a tough two years, but we are very fortunate. We have a strong company,” he said.
Mr Hurcomb is aiming to increase revenue in the energy sector from £5m to £50m and the building services maintenance division from £40m a year to £60m. He also hopes to win up to £100m of work from local authorities outsourcing building maintenance operations.
He told the paper: “My vision is to make sure in five years’ time we have a stronger, more diversified, more resilient business that is well represented in a number of sectors, which will include building, but will also include engineering services, maintenance, ICT, energy, nuclear, these things.”
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