Stepnell rejigs after profit nosedives

Regional contractor Stepnell has rejigged its business after the firm barely scraped into the black last year.

The firm, which has been in business since 1867, saw pre-tax profit at its construction arm nosedive from £2m to just £50,000 in the year to March 2019 on turnover up 12% to just under £164.5m.

The Rugby-based builder said it had been hit by “difficulties experienced in closing certain larger contracts, where there have been encountered significant client variations resulting in substantial additional works and consequential delays”.

The accounts were signed off last November and the firm said it had restructured its seven offices into three regions – the East Midlands, Midlands and Southern.

It added: “We expect improved integrated working from the newly created regions. The regional offices will work together to ensure that they stay close to the local supply chain and local suppliers.”

Joint managing director Tom Wakeford promised: “We will be more selective about the projects that we bid for ensuring that they have the right commercial scope and opportunity.”

All the firm’s existing offices, which include Nottingham, Bromsgrove and Bristol, are being retained under the rejig.

Tom Sewell will head up the East Midlands, Rob Speirs in charge of Southern and Adrian Barnes in charge of Midlands.

Stepnell’s parent company, Stepnell Holdings, which includes its developments and property businesses, posted a 7% rise in turnover to £168m in the year to March 2019. But pre-tax profit dived from £10.7m to £1m. The £10.7m figue included a £4.8m profit from the sale of investments.