A historic family-owned construction group, Stepnell, is undergoing a strategic demerger.
- The demerger divides Stepnell into four specialised firms, each managed by different family members.
- Despite previous financial challenges, Stepnell has exhibited resilience with a recent rebound in profitability.
- This demerger aims to bolster agility, allowing each entity to focus on its core market strengths.
- Family members will continue leading distinct divisions, ensuring continuity in leadership and strategic vision.
The long-established Stepnell Group, a family-owned construction entity, is set to undergo a significant transformation as it splits into four specialised firms. This strategic demerger, announced on 24 October 2024, marks a pivotal moment in the company’s evolution. Established in 1906, Stepnell has operated as a comprehensive service provider, encompassing construction, energy, joinery, and property management, handling projects up to £30 million.
Key figures from the founding Wakeford family, who have been instrumental in the company’s development, will continue to drive the newly formed businesses. Tom Wakeford will spearhead Stepnell Ltd and the decarbonisation and renewables branch, Step Energy. Ed Wakeford will lead the development sector, while David and Peter Wakeford will manage the property investment segments. This continuation ensures that while the business structure is evolving, the leadership remains deeply rooted in its core values and vision.
The rationale behind this considerable reorganisation is to foster greater agility and focus across the group’s operations. By operating as independent entities, each business can leverage its specific strengths and respond more swiftly to market demands. Stepnell’s official statement highlights the benefits for clients and employees, emphasising that this move is designed to enhance growth, investment opportunities, and service improvement.
Reflecting on the company’s financial trajectory, Stepnell experienced a peak turnover of £180.4 million in 2019, followed by years of decline. However, the most recent financial results up to 31 July 2023 show a positive turnaround, with turnover climbing back to £95.4 million and a pre-tax profit of £1.3 million. This financial recovery underscores the group’s resilience and capacity to adapt effectively in a challenging economic environment.
Projects will proceed uninterrupted during the transition, with the company reiterating its commitment to stakeholders. Recent noteworthy projects include two building refurbishments for the University of Southampton, valued at £3.6 million. Additionally, Stepnell maintains a strong pipeline with 72 per cent of its turnover coming from repeat business, underlining its stable market position.
This is not an entirely unprecedented evolution for the company. In 2022, Mark and Richard Wakeford amicably departed to pursue separate ventures, demonstrating the family’s history of strategic realignment in pursuit of long-term success.
The group anticipates completing the demerger by January 2025, with a continued focus on delivering quality and achieving its business objectives throughout the transition.
The Stepnell Group’s strategic demerger represents a forward-thinking approach to maintaining competitive edge and operational agility.
