Speller Metcalfe Posts Record Year: Margin Rises, Cash Hits £32m

Speller Metcalfe posted its second straight year of record profitability. Turnover reached £158.9m. The pre-tax profit margin widened to 3.15% from 2.1% the prior year. Gross margin rose to 10.9% from 9.5%.

Average cash balances climbed to £32m from £23.6m. The firm said the stronger balance sheet gives it a solid platform for future investment and growth. In a sector where retentions and late payments are common, cash is a differentiator. The jump to £32m from £23.6m gives the contractor flexibility to self-fund projects or absorb delays without drawing on expensive debt.

The margin improvement cuts against a backdrop of rising material costs and labour shortages that have squeezed many peers. Speller Metcalfe's gross margin of 10.9% and PBT margin of 3.15% suggest tighter project selection and better cost control, the company indicated.

The contractor delivered more than £62.8m in social value during the year. Local supply chain spend increased 53%. That deepens regional ties and can improve project delivery while cutting transport emissions. The firm said the figures reinforce its commitment to supporting regional economies and communities.

Environmental performance also improved. Carbon intensity fell to 9.40 tCO₂e per £1m of turnover from 11.76, a 20% reduction. The business is progressing toward its Net Zero targets. It did not disclose the specific measures behind the drop.

The results reflect a long-term strategy focused on building a stronger and more capable business, the company said. The approach prioritises margin and cash over growth for growth's sake. That echoes a principle Peter Drucker articulated: doing the right things beats speed.

For a private contractor in a cyclical industry, the combination of rising margins and a growing cash pile is rare. The second consecutive record year suggests the strategy is working.