Sales at NG Bailey fell by 23% in the year to February 2010. Despite this fall, the privately owned building services provider, turned in a pre-tax profit of £19.9million.
However, the company has cut its workforce by 7% and closed the group's final salary pension scheme.

'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,' warned Nimble Thompson, chairman.

'There are two very clear-cut reasons to explain the profit figure. First, some of our most successful longer-term projects came to a financial close, resulting in us being able to take profit on these in accordance with our recognised accounting policies.

'Secondly, we saw a welcome revaluation in our investment portfolio, which returned to a £6.7million profit compared with a £6.7million loss the previous year, a swing we weren't expecting quite so soon.

'Despite such rewarding results, which reflect the group's earlier efforts, we have not been immune from the downturn, which is evident from the 23% fall in sales.

'We expect our sales volume will remain at a similar level for at least the next couple of years and for that reason we have unfortunately had to take the necessary steps to reduce our workforce by 7%.

'Regrettably, we also took the decision to close the group's final salary pension scheme. Although at the year end the statutory deficit had reduced substantially, the long-term volatility of the scheme presented us with too big a risk to the business and our employees to allow it to continue.'

Looking ahead, NG Bailey's strategy of For Life in Buildings remains at the heart of its operation. Nimble continues: 'For Life in Buildings helps differentiate us from our competitors and adds value for our customers.

'The board has set aside substantial investment for the 2010/11 year which will help us improve our market penetration, capitalise on our technical expertise and target new and emerging sectors.

'At the same time, we will maintain the organic development of our core businesses that have been the cornerstone of our long-term success.'