Nottinghamshire structural steel specialist Caunton Engineering has reported a substantial decline in profitability despite increasing annual turnover to £90.1m, as difficult trading conditions continue to affect the construction industry.
The Moorgreen-based business recorded pre-tax profit of £258,292 for the financial year ended 31 January 2026, compared with approximately £2.75m in the previous period, according to financial figures reported by TheBusinessDesk.
Profit after tax fell even further, reaching just £23,729 against approximately £2.5m a year earlier. The results show a substantial deterioration in the earnings retained by the business despite its increased commercial activity.
Based on the reported turnover and pre-tax profit, Caunton’s latest pre-tax margin was approximately 0.29%. That leaves relatively little profit from each pound of revenue generated through the company’s engineering and construction contracts.
Caunton designs, manufactures, and erects structural steelwork for developments across the UK, supplying projects including industrial buildings, distribution centres, energy infrastructure, commercial premises, and public facilities.
The company operates from Moorgreen Industrial Park near Nottingham, where its manufacturing facilities combine structural engineering design, computer-aided production, fabrication, and preparation of steelwork for installation.
Caunton describes annual production capability of approximately 40,000 tonnes of steelwork and employs around 250 people. Its integrated operations allow it to manage projects from initial design through fabrication, delivery, and on-site erection.
The scale of its contracts means that revenue can be influenced considerably by the timing of major construction programmes. Large projects can involve substantial fabrication and installation requirements, with expenditure incurred across different stages of delivery.
Among the company’s recent projects is a logistics facility at Avonmouth for Marks & Spencer, where Caunton was appointed by Winvic Construction to provide approximately 1,700 tonnes of structural steelwork.
The temperature-controlled development forms part of a £74m logistics investment and includes a substantial warehouse structure, external office accommodation, and connecting facilities.
Caunton has also secured work on the East Anglia TWO offshore wind project, providing structural steelwork for an onshore electricity substation near Friston in Suffolk. The contract extends its activities into infrastructure supporting renewable electricity generation.
These projects demonstrate the range of work undertaken by the company, but contract volumes alone do not determine financial performance. Structural steel contractors must manage material purchasing, specialist labour, manufacturing capacity, transportation, and site installation against the prices agreed with customers.
Where costs rise after a project has been priced, the effect on profit depends partly on the contractual arrangements governing changes and whether additional expenditure can be recovered. Delays or variations in construction schedules can also affect the use of labour and manufacturing resources.
Caunton has previously identified pressure from labour costs, business rates, and employer National Insurance contributions in its financial commentary for the year ended January 2025. Management also referred to competitive pricing conditions and the challenge of maintaining margins while customer demand remained subdued.
Those earlier pressures provide context for the company’s operating environment, although the precise contribution of individual costs to the latest profit decline has not been established.
Caunton has continued investing in operational capability. During 2025, it upgraded logistics arrangements at its site, developed employee facilities, and refurbished its training academy. It also gained Fit for Nuclear status, supporting its ability to pursue work associated with the nuclear supply chain.
The company remains active across major construction and infrastructure markets, including logistics, energy, and industrial development. Its latest financial performance nevertheless shows that higher turnover has been accompanied by a sharp reduction in profitability, with pre-tax earnings falling to approximately £258,000.
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