Family-run contractor demerges again to be ‘more agile’

A family-owned construction group is to be split into specialist firms in a fresh demerger.

Warwickshire-based Stepnell Group announced it is being split among members of the Wakeford family that helped create it in 1906.

Currently the group operates as a whole-service contractor including construction, energy and joinery work on projects up to £30m. It also has a property management and investment division. Members of the Wakeford family are among its directors.

In a statement on Thursday (24 October), the group announced it will be split into four parts, each led by a member of the family.

The existing leadership team will remain in place. Tom Wakeford (pictured) will continue to lead construction business Stepnell Ltd, as well as the group’s decarbonisation and renewables business Step Energy.

Ed Wakeford will continue to lead the development business. David Wakeford and Peter Wakeford will each head up property investment companies.

The group’s statement said: “The effect of the demerger will positively benefit current and potential clients, providing clear leadership for each of the respective businesses and their employees.

“Operating the group as independent businesses will enable us to be more agile to focus on our clients, boosting these robust businesses in our chosen markets – and creating greater potential for each business to expand, invest and further improve the offering to its clients and employees.”

Stepnell Group’s turnover peaked in 2019 at £180.4m but this was followed by three years of decline. In its most recent accounts, for the year to 31 July 2023, turnover recovered slightly to £95.4m and pre-tax profit stood at £1.3m.

The group made a pre-tax loss of £28.8m in 2019 and a further loss of £3.4m in 2020.

But since then the group has made a small pre-tax profit every year. And in its latest accounts, Stepnell said it has repeat work currently at 72 per cent of turnover and is “well-capitalised and financially resilient”.

Recent construction work included two building refurbishments for the University of Southampton worth £3.6m.

In March last year it announced it was among firms to win a place in one of the lots on the Southern Construction Framework.

It is not the first time Stepnell Group has demerged. In 2022, cousins Mark and Richard Wakeford separated amicably from the business to run Evoenergy, Brackley Investments, the Whitecross PFI contract and Aspen Retirement.

The latest statement said projects would not be affected by the announcement.

The group said: “We aim to conclude the demerger in January 2025; the businesses will continue to deliver for our clients and stakeholders as we transition into full demerger.”