Story Contracting boosts profit despite drop in turnover

Story Contracting has reported increased profit despite an 18% drop in turnover.

The Carlisle-based firm, in its results for the year to 31 March 2025, reported turnover of £206.7m, down on the £253.3m it posted for the previous year.

The firm, which employs more than 700 people, attributed the drop to a “slower- than-anticipated mobilisation of activity” under its ‘CP7’ frameworks - under which it is delivering building, civils and railway systems schemes for Network Rail.

It said: “While the company retains a strong position across several key frameworks, delays in project approvals, ongoing industry reform, and broader economic pressures have affected the timing and volume of work released to the supply chain.”

It said revenue from major projects, including from the Hope Valley joint venture with Volker Rail to upgrade rail between Sheffield and Manchester, and the Oldhall Waste to Energy Plant in Scotland, declined year-on-year as the projects are nearing completion.

But despite the drop in turnover, the firm increased its pre-tax profit by 3%, from £9m to £9.2m.

It said the increase reflects a “return to more typical gross margin levels” and a reduction of turnover from large-scale infrastructure projects which yields lower profit margins.

The group’s administration costs increased from £17.9m to £21.7nm due to staff cost increases as it moves to a regionalised operating structure.

Story Contracting placed 81st in Building’s recent Top 150 Contractors and Housebuilders list, which ranks contractors by turnover.