Envelope contractor’s parent triples profit

The parent company of top envelope contractor Stanmore has tripled its profit amid growing demand for new housing.

Akaal Group reported £20.9m in pre-tax profit for the 12 months to 31 March 2024 – three times the £6.9m figure it made the year before.

Turnover grew by 39 per cent to £197.9m, which director Rajbir Manak attributed to a post-Covid economic rebound and strong demand for new housing.

Akaal oversees all companies under the Stanmore brand, including Stanmore Contractors Ltd, Kent Powder Coating and Manak Homes.

Stanmore Contractors accounted for the vast majority (£189.8m) of group turnover and its pre-tax profit more than doubled from £8.2m to £19.7m.

Akaal paid out dividends of £550,000 compared to £542,000 the previous year.

Short-term bank loan debt decreased from £633,600 to £560,200. Loans repayable by the group after more than one year also fell from £2.2m to £1.9m.

Akaal employed a monthly average of 236 staff in the year, down from 248 in 2022/23. But its annual wage bill rose slightly from £12.3m to £12.9m.

Writing in Akaal’s accounts, Manak said that government plans to build 1.5 million homes during the current parliament provided a strong pipeline for Stanmore, which operates mainly in the residential market.

The impact of higher interest rates on the new housing market and future labour shortages are Stanmore’s biggest risks, he added. However, Manak said the business feels able to respond quickly to challenges and has enough financial resources to continue.

The latest revenue figure represents the first time Akaal topped its pre-Covid turnover of £153.2m. Manak said he expected similar turnover in the current financial year.

He added that the demise of ISG had no effect on the business, as Stanmore did not do any work with the collapsed contractor.

Beginning as a drylining and plastering firm in 1958, Stanmore has become one of the UK’s highest-earning envelope contractors. It provides installation and design services across facade types, including brickwork, glazing, metal work and modular.

In 2024, it topped Construction News’ annual table of specialist envelope contractors for the second year in a row.

The firm is currently working with Berkeley Homes on some of its major London developments, including Oval Village in south London and Woodberry Down in north London.