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Thu February 20 2020

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Stepnell takes action on overheads

24 Jan Construction contractor Stepnell is rationalising its management structure to cut costs after seeing profits dive last year.

Joint managing director Tom Wakeford
Joint managing director Tom Wakeford

The changes see the group structure based on three regional operations instead of five: East Midlands (with an office in Nottingham), Midlands (offices in Rugby and Bromsgrove) and Southern (Bristol, Wantage, Poole and Southampton).

Previously, the five regions were East Midlands (Nottingham), West Midlands (Bromsgrove), Rugby, Bristol/Wantage and Southampton/Poole.

Within the new structure all of the existing local offices will be retained.

Tom Sewell will continue as regional director for the East Midlands region, with Adrian Barnes heading up the newly created Midlands region and Rob Speirs acting as regional director for the wider Southern region.

In the year to March 2019 the family-owned company saw its pre-tax profit collapse to just £50,000, from £2.1m the previous year, despite turnover growing 12% to £164m.

Joint managing director Tom Wakeford said: “We see positive signs in the UK economy, and we want to focus our resources so that they are at a level where we can be sure to fully recover our costs. We will be more selective about the projects that we bid for ensuring that they have the right commercial scope and opportunity. We will also continue to review central and regional spend carefully to drive efficiencies.”

He added: “We expect improved integrated working from the newly created regions. The regional offices will work together to ensure that they stay close to the local supply chain and local suppliers whilst delivering an excellent service to the customer.”

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