Oktra, a leading office fit-out specialist, has experienced a decline in both turnover and profit, though its directors remain content with the results.
- Turnover dropped to £113.6m, a 5.8% decrease from the previous year’s £120.8m, with substantial contributions from furniture retailing.
- Pre-tax profit fell by £2.6m, leading to a reduction in profit margin, yet figures surpass those of the 2021/22 fiscal year.
- Despite intensified competition, Oktra anticipates favourable growth opportunities in the upcoming year, with diminished inflation risks due to short project durations.
- An increased workforce and a dividend payout highlight Oktra’s strategic adjustments amidst a fluctuating property market.
Oktra, a prominent entity within the office fit-out sector, has reported a dip in turnover to £113.6 million for the fiscal year ending 31 May 2024, representing a 5.8% decline from the prior year’s figure of £120.8 million. Of this turnover, £8.2 million originated from furniture retailing, while £105.4 million was attributed to office fit out and related design and consultancy services. The firm acknowledged this decline but expressed satisfaction with the results, as articulated by the directors.
The company’s pre-tax profit also saw a reduction, falling by £2.6 million to £8.7 million, which decreased its profit margin from 9.4% to 7.7%. Nevertheless, these financial outcomes remain above those recorded in the 2021/22 financial period. According to Chief Operations Officer Martin Leeper, “The performance for the year was in line with expectations,” further emphasizing the directors’ contentment with the current financial state.
With operational bases in the City of London, Guildford, Birmingham, and Manchester, Oktra has expressed optimism regarding the sector and its competitive position in the market. The directors foresee “healthy competition in 2024/25 but are optimistic about the sector and its opportunities to take market share.” This optimism stems in part from their reduced exposure to inflation risks, given that the company’s projects typically span three to four months and procurement occurs at the commencement of said projects.
In its recent financial year, Oktra has increased its average staff headcount by 30, reaching a total of 181 employees. Conversely, directors’ remuneration has been adjusted, seeing a reduction by £340,000 to £3.6 million. The company also distributed a £7.4 million dividend during the year, marking a decrease from the previous year’s £9.1 million.
Martin Leeper pointed out that the future of Oktra’s performance is largely contingent upon the commercial property development activity in London and the South East. He noted that a slowdown in this area would inevitably impact the company’s prospects. Despite the challenges posed by a potentially suppressed property market, Leeper identified “the expansion and contraction of individual UK businesses as potential opportunities for growth.”
Oktra remains strategically poised for future growth amidst a challenging market environment.
