Stepnell has adapted to market challenges by strengthening its supplier and delivery models, supporting its steady revenue growth.
- Stepnell shows a 15% increase in turnover to £108.8m despite a decline in profit margins.
- Key supply chain relationships and direct project delivery play a crucial role in Stepnell’s strategy.
- Early client engagement and budget transparency are emphasised to ensure project success.
- Stepnell operates with a strong project pipeline and aims to finalise a demerger by January 2025.
In a year marked by economic unpredictability, regional building contractor Stepnell has skilfully navigated market challenges, primarily by enhancing its direct delivery approach and nurturing relationships with key suppliers. These strategic moves have allowed the company to achieve a notable 15% increase in turnover, totalling £108.8m, despite the adverse impact on profit margins, which narrowed from 1.5% to 1.0%.
Under the leadership of Tom Wakeford, Stepnell has concentrated on deepening partnerships within its supply chain, a strategy highlighted in their 2024 annual report. Wakeford noted the significance of direct delivery, with an increasing proportion of critical project elements being handled directly, thus ensuring a measure of control and quality.
Early engagement and transparent budget practices have become fundamental principles for Stepnell, fostering a collaborative working environment that benefits all parties involved. This approach not only optimises client outcomes but also enhances the likelihood of project progression by addressing potential issues early and offering value-driven solutions.
Strong operational foundations are evidenced by the company securing 90% of its planned revenue budget for 2024/25, a 10% enhancement over the previous year. This is largely attributed to frameworks and repeat business, which remain pivotal in their workload.
Tom Wakeford remarked on the pressures of high interest rates on client budgets but reaffirmed the benefits of early project involvement. By offering preemptive budgetary advice and resolving technical challenges upfront, Stepnell continues to deliver advantages to clients and community projects alike.
Operating from multiple locations including Nottingham and Southampton, Stepnell is bolstered by a solid project pipeline and a resilient property portfolio. The company remains actively involved in key public sector framework agreements, providing a steady avenue for continued improvement and strengthening client and supply chain relationships.
In a significant organisational shift, Stepnell plans to complete a demerger by January 2025, effectively separating its construction, property management, and investment segments. This strategic move is poised to streamline operations and potentially unlock further growth opportunities.
Stepnell’s proactive strategies and market adaptability position it to manage current and future industry challenges effectively.
