Financial results from Stepnell show 15% revenue growth last year but softer profits.
In the year to 31st March 2024 Stepnell Limited made a pre-tax profit of £1.04m, down 18% on the previous year’s £1.27m. Turnover was up 15% at £108.8m (2023: £93.7m).
At an operating level, the profit margin narrowed from 1.5% to 1.0%.
“We have made good progress in building deeper relationships with a number of key supply chain partners and we recognise that this is an area of continued focus for the business,” managing director Tom Wakeford wrote in the company’s 2024 annual report.
“We are proud of our delivery model where an increasing proportion of the critical elements of our projects are being directly delivered and we aim to continue to invest in, and grow this over the coming years.”
Wakeford said that the business placed early engagement as a core client priority, “facilitating budget transparency and creating a collaborative, well managed and successful working environment for all parties”.
Stepnell has already secured 90% of its 2024/25 planned revenue budget – a 10% increase from last year – citing frameworks and repeat business as the principal sources of its workload.
Wakeford said: “Our latest performance has seen us consolidate our position through improved performance across a range of key indicators. The increase in turnover is a demonstration of planned growth in targeted areas and progress across the business, despite the prevailing market challenges.
“High interest rates continue to affect projects starting on site as client budgets come under pressure. Transparency over budgets is absolutely critical in this regard, creating and nurturing positive relationships that improve client and project outcomes.
“Where we are engaged early on a project, we see a far greater probability that the scheme will progress as we are able to provide early budget advice, identify and address technical problems, and deliver value-led solutions for clients and their communities.
“We operate with a healthy project pipeline, our property portfolio remains strong, and we continue to secure placement on key industry public sector frameworks. This facilitates continual improvement of our offering to our clients and the supply chain we work with.”
Stepnell operates from offices in Nottingham, Rugby, Wantage, Bristol, Southampton and Poole. Publication of its annual results follows agreement by family shareholders to demerge the Stepnell Group – splitting the construction, property management and property investment interests of the business. [See previous report here.]
Stepnell aims to conclude the demerger in January 2025.
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