Construction giant reports ‘solid and stable’ performance

Construction giant Stepnell has posted a 12 per cent turnover increase and a four per cent jump in its gross profits for the 2018-2019 financial year.

The firm is currently working on several major projects across the Midlands, including a huge student accommodation scheme at West Walk in Leicester, and Stepnell Park, a £10 million business park in Rugby.

The company has described its performance as “solid and stable” after seeing its turnover increase from £146 million in 2017/18 to £164 million.

Tom Wakeford, joint managing director of Stepnell, said: “We welcome these results after a challenging year for the construction industry. The market remains mixed with a number of our competitors struggling, and as such a few projects had their challenges, particularly through terms and conditions that proved to be more onerous that expected and subcontractors going out of business.

“We remain cautiously optimistic that our revised business model, with a focus on lower risk terms and conditions, will hold us in good stead. Stepnell has a more diversified range of projects than ever before and this will position us to withstand market risks.

“Strategically, Stepnell is using 2019/20 as a year of consolidation and looking at our customer base very carefully. We will continue to refine project selectivity this year, being cautious and signing up to the right commercial terms.”

Stepnell’s parent company Stepnell Holdings has also reported a steady set of results, increasing its turnover by 7.41 per cent to £168 million.