Did you know that there is a version of The Construction Index for the USA? Visit the site No thanks
Follow us on Twitter Follow us on LinkedIn Follow us on Instagram
Daily construction news
Weekly plant news

Construction News

Sun October 22 2017

Related Information
Related Information
Related Information

News » UK » Severfield plots European expansion » published 14 Jun 2017

Severfield plots European expansion

Brexit shmexit! With the pound at bargain basement prices, structural steel group Severfield is looking to invade mainland Europe with an export drive.

The Ordsall Chord rail bridge project was among Severfield's bigger jobs during the year Above: The Ordsall Chord rail bridge project was among Severfield's bigger jobs during the year

After a bumper year, Severfield has revealed that it is exploring export opportunities across Europe. It’s joining, not leaving.

Severfield's pre-tax profit nearly doubled to £18.1m in the year to 31st March 2017 (2016: £9.6m) on revenue up 10% to £262.2m (2016: £239.4m).

Excluding one-off items, the underlying profit before tax figure was up 50% to £19.8m (2016: £13.2m). The operating margin improved to 7.5% (2016: 5.7%).

Severfield completed more than 110 projects during the year, including four prestige projects in London that were all worth more than £20m: the new roof for Wimbledon No.1 Court; the new stadium for Tottenham Hotspur FC; the office tower at 22 Bishopsgate; and a major new commercial head office building.

It also completed emergency remedial work to replace faulty bolts on The Leadenhall Building in London (aka the Cheesegrater), although arguments continue over who will pay for the repairs.

Enthusiasm for international expansion is no doubt buoyed by Severfield’s Indian joint venture finally breaking into profit for the first time, bringing in £200,000 for Severfield. (It lost £300,000 in India the previous year.) The Indian JV’s order book has risen from £35m in November 2016 to £73m at the start of June 2017.

Now the company is seeking to expand across Europe. Acting chief executive Alan Dunsmore said: “After undertaking a significant amount of research into the potential market opportunity in Continental Europe we have employed a European business development director based in the Netherlands, who will focus on tailoring our established UK offering for expansion into this market.”

Alan Dunsmore stepped up from finance director on an interim basis in March when chief executive Ian Lawson was forced to take leave of absence due to ill health.

Of the financial numbers, Mr Dunsmore said: “I am delighted to announce another set of excellent results which keeps us on track towards our target of doubling our 2016 underlying pre-tax profit by 2020. Our strategy is well-flagged and it continues to deliver operationally and financially. Our return on capital employed has risen to 14.6% and cash generation has been excellent. The current order book and pipeline, coupled with a continued stable market environment, will support further progress in the current financial year towards our 2020 target."

 

 

 

 

 

MPU

Download our free construction news iPhone / iPad app. Sign up to our FREE email newsletters or subscribe to our RSS feed for regular updates on the latest Construction News, Plant News, Contract News & Supplier News. The Construction Index also provides the latest Construction Tenders, Construction Market Data & Construction Law Commentary all FREE.

This article was published on 14 Jun 2017 (last updated on 15 Jun 2017).

More News Channels