Pexhurst recently announced that it had reached a £70m turnover in a continually unstable and volatile sector. David Crowson, Editor, spoke to Nick Tagliarini, Director, to find out more about the story behind this success.
David was curious to find out from Nick what the main drivers were behind their 63% increase in turnover. Nick explained that there were two key factors contributing to this growth: higher average project values and strong client retention.
He said: “We have built a particularly strong reputation for delivering industrial and logistics refurbishment projects in the region of two to five million pounds. However, this does not mean we will not consider projects outside of this range. Many of our clients have extensive property portfolios and ambitious plans for consistency and quality, which has provided us with a reliable pipeline of work.
“Secondary factors behind our growth include our geographic expansion, particularly into the Midlands, as well as our team’s proactive approach to relationship building and marketing. The Midlands is a real hotbed of industrial and logistics activity, so it was a natural step forward for us to become more involved, especially where we can continue working with clients we have supported across the Home Counties, London, and the South East of England for many years.”
David asked Nick whether the increase in project size and turnover had changed the way Pexhurst manages risk, procurement, and supply chain relationships.
Nick explained that, they continue to maintain strong supply chain relationships, many of which have been in place for more than 20 years. “Winning work and having a healthy pipeline of projects is obviously a key component, but we also make time to strengthen personal relationships by hosting engagement days and training opportunities, including large charity fundraisers and intimate Continued Professional Development sessions on important industry topics such as improving sustainability and reducing carbon emissions.
“There is a lot of work that takes place in the background to nurture valuable relationships with our supply chain, beyond what happens on site,” said Nick.
Nick and David went on to discuss the current market conditions, with David keen to understand what opportunities have emerged for refurbishment and fit-out specialists despite the wider challenges facing the construction industry.
Within the industrial and logistics sector, consumer demand has a significant impact on market response. Currently, occupiers are exploring different ways to maintain stock levels, which has led to more properties opening in areas that have not traditionally been associated with the sector. Meanwhile, new logistics hubs are also emerging in constrained areas of London, creating exciting technical challenges for us to overcome on behalf of our clients, explained Nick.
Nick went onto explain that leaving the EU had also increased the need for more warehouse space, due to supply chain changes, border delays, and the shift from “just-in-time” to “just-in-case” inventory management.
Regulatory changes, such as tightening Energy Performance Certificate requirements and Minimum Energy Efficiency Standards, have placed greater emphasis on improving sustainability of existing assets.
Concluding on this point he said: “There are also several major growth sectors where fit-out and refurbishment are playing an increasingly important role. Data centres and national defence are two areas that we are watching closely.”
Nick discussed the growing focus on sustainability, retrofit, and improving existing buildings, and how this is influencing client demand.
He explained that, with the challenges faced by the construction industry over the past year, sustainability had taken somewhat of a back seat for some clients due to competing conversations, concerns, and priorities. However, he believes that sustainable project delivery, particularly within the fit-out and refurbishment sector, is now an expectation rather than an aspiration.
Importantly, the appetite for carefully selected and highly impactful sustainability measures is expected to remain.
“We are also very proud of our own focus on sustainability. The 2025/26 financial year saw us reduce our Scope 1 and Scope 2 emissions by 33% compared with the previous year, exceeding our projected reduction target by 23%, as outlined in our Carbon Reduction Plan1,” said Nick.
David and Nick discussed how Pexhurst has successfully expanded beyond London and the Home Counties, exploring the opportunities and challenges created by this geographical growth.
Nick explained that the business has broadened its workload outside of London and the Home Counties through project wins across the South West and Midlands. This expansion has been very well received by their supply chain.
Nick said: “The London market is very saturated, and project logistics can be particularly complex, but working outside of the South East presents new opportunities to learn and be rewarded. As a result, our existing supply chain has stepped up and joined us on this journey, while our geographical growth has also allowed us to build new supply chain relationships.”
David posed an important question to Nick, exploring how Pexhurst ensures that organic growth does not compromise project delivery, quality, or client satisfaction.
Nick said: “We regularly undertake project appraisals to make sure client feedback has been taken onboard, as well as to track progress against the timeline and Key Performance Indicators.
“We have also developed our own project tracking and management system, called PexHost2. This has refined lots of our processes and made clients feel closer to projects. The system will be continually tweaked and improved, but the early signs are that it is an important and beneficial system to have in place.
“Finally, we maintain excellent staff retention, with 35% of the team having been with us for 10 years or more. This means our staff have stronger and longer-standing relationships with clients, and our own functions are safer in the hands of a hardworking team.”
Concluding the conversation, David was interested to hear Nick’s thoughts on the future and the biggest opportunities and risks facing Pexhurst and the wider refurbishment and fit-out sector over the next few years.
Nick said: “To summarise, opportunities include the ‘retrofit over rebuild’ agenda, Environmental, Social, and Governance becoming a commercial necessity, necessary industrial and logistics infrastructure improvements, and the demand from occupiers for better workspaces.
“On the flipside, margin pressures, skills shortages, technology disruption and economic uncertainty are all potential challenges that will have to be monitored closely.”
