CN Specialist Index 2023: Top 10 Scaffolding Contractors

By Keith Cooper

This year’s index shows that inflationary pressures squeezed scaffolding companies’ revenues, profits and margins.

The average pre-tax margin of the top 10 scaffolding specialists has fallen to 5%, compared to 6.7% for companies in the 2022 index.

However, the top 10 companies have increased their aggregate revenue by 21 percent compared to companies in the 2022 ranking.

Five companies’ margins narrowed, although the worst performer was eight’s PHD Modular Access, which fell 10.6% and posted a 58% pre-tax profit from 3 .9 million pounds to 1.6 million pounds. GKR Scaffolding (ninth) was the only other company to see its pre-tax profit fall, from £1.4m to £1.2m.

The outlook for the other eight companies is mixed. Top-ranked Kaefer and TRAD Group, in fourth, each returned to the black, while Brogan Group posted a profit increase of just 0.4 percentage points (although that’s based on its two years of accounts previous ones, as he had not submitted new ones before the data collection deadline).

New entrant Lyndon SGB posted increases in revenue (9 percent) and pre-tax profit (31 percent), while its margin widened slightly, from 1.4 percent to 1.6 percent.

Kaefer turned last year’s £500,000 loss into a £3.2m profit as revenue rose 10.8% from £234.1m to £259.4m £.

Alltask is in sixth place after posting the biggest proportional increase in revenue at 48.5%, and also tripled its pre-tax profit to £6.5m. The firm’s top line also benefited from a doubling of turnover at EA Scaffolding & Systems, which it acquired in 2020.

GKR Scaffolding and TRAD Group saw their turnover decline by 0.7% and 8.2% respectively.

Despite its drop in pre-tax profit and margin, PHD Modular Access was boosted by a 24% increase in revenue, which pushed it up one place to eighth. In its latest accounts, PHD says its business had performed well amid “difficult” trading conditions, “labour shortages” and the adverse effects of inflation.

GKR Scaffolding says it experienced an increase in distribution costs driven by “inflationary pressure” and has put in place “enhanced planning” to manage higher material costs.

Alltask CEO Daniel Fincham attributes his company’s exponential growth to the digitization of its business; major investment in system scaffolding (modular); and increase efficiency in logistics. “Digitalization has facilitated the growth of our turnover without the corresponding increase in fixed overheads,” he says. “System scaffolding allows us to do more work with the same workforce.”

Solving the skills shortage should be a priority for the scaffolding industry, adds Fincham.

Kaefer’s director of business and strategy, Trevor Woodward, says the company has benefited from government investment in key markets: nuclear, shipbuilding and energy transition.

“The country is still trying to recover from the pandemic and the economic impact it has had. Now we are all fighting against inflation and feeling the pinch, just like our customers,” he explains Construction news. “Right now, we’re focused on organic growth and just making sure we’re leveraging our strengths.”

Notes: Altrad UK includes Altrad Services (formerly Cape Industrial) and Altrad NSG. TRAD Group Three company accounts, one has not presented new figures since the last time. Brogan Group There are no new accounts since the previous edition.