Stepnell reports positive growth and strong start to Q1
After a year of consolidation and planned improvement, Stepnell has experienced a strong start to the financial year with a good level of orders secured for 2021/22 across its regions.
The complete construction partner has reported a turnover of £104 million and increased net assets of more than £16 million for the year ended 31 March 2021 – with a net profit of £1 million – providing a solid foundation for the company going forward which compares favourably to other construction businesses alike.
Tom Wakeford, joint managing director at Stepnell Ltd, said: “2020 was an extremely challenging year for many businesses, particularly for those in the construction industry. The year was dominated by the emergence of the global Covid-19 pandemic and economic uncertainties associated with Brexit.
“Stepnell was one of a handful of contractors to continue on site throughout lockdown and the commitment of our employees and our supply chain relationships was fundamental – we were able to source materials and sub-contractor support across our projects. Our results reflect our decision to work with our clients through the pandemic which was a great achievement.”
The family-owned firm increased its Net Promoter Score, which is used to assess performance and help measure client satisfaction, to +45 in May 2021, showing that the company is performing well above average and is committed to delivering the best service to its clients.
Tom added: “We are delighted to have increased our NPS to +45 which is rated as ‘good.’ This is a tremendous performance and enormous credit to our employees and the companies we work with and is a great achievement, particularly in the current climate.”
Stepnell has secured a number of exciting project wins and its current projects are performing well, including Stepnell Park – a new £10m business park adjacent to Stepnell’s head office in Rugby – which is now substantially let. Stepnell has also recently secured work at a number of hospitals including five schemes for Royal Berkshire Hospital, refurbishment works for Northampton Hospital and building works for Salisbury NHS Foundation Trust, as well as starting on site at £9.7m retirement build Wooburn Green for Lifestory Group.
The contractor has also recently secured a number of other healthcare wins and has started on site at two significant care home projects, including £6.5 million care facility Bennett Drive Care Home for repeat client Cinnamon Care and £4.3m refurbishment project to the existing Town Thorns care centre for Motor and Allied Trades Benevolent Fund, both located in the Midlands. They have also been been appointed to build a £9m grade A office building for repeat client MHR as well as a new £2.5m refurbishment centre for National Grid in Leicester.
Tom added: “Stepnell has secured orders which will enable it to deliver sales in excess of £100m during 2021/22, in line with our current business plan. The company has started the current financial year with an excellent level of secured work – circa 85% of the planned workload for the year – which we are really pleased with.”
The 154-year old firm, which operates across central and southern England with a three-region model, prides itself on its unique complete construction partner approach offering a wide range of services including detailed risk management and partnership during pre-construction to work with its clients to solve the problems before they occur.
Tom added: “We pride ourselves on our ability to be involved early in projects, to provide an end-to-end service where we can understand our clients’ objectives, offer enhanced solutions and work with them to achieve the best outcome.
“Despite the challenges of the global pandemic and the uncertainty of Brexit, our focus upon service to our clients is the cornerstone of our business. The continuation of this ethos across the business has led to the majority of the work which has been secured for 2021/22 in respect of which we anticipate a similar level of turnover to 2020/21.
“All of our regional teams have been working incredibly hard to secure new project wins and ensure that we emerge from this pandemic as best as we can. Stepnell has a more diversified range of projects than ever before, with the group also having the benefit of a property portfolio of more than £40m.
“With our stable business model and continuing our selective approach to tendering for construction projects – to which its skill base is best suited and where terms and conditions do not impose unacceptable levels of construction risk – we are confident of our position to withstand market risks and continue our upward trajectory.”