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Mon August 02 2021

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Big sheds and HS2 bridges help Severfield rack up orders

16 Jun Annual results for structural steelwork group Severfield show an 11% increase in revenue and a 18% fall in pre-tax profit.

Severfield chief executive Alan Dunsmore
Severfield chief executive Alan Dunsmore

Severfield generated revenue for the year ended 31st March 2021 of £363.3m (2020: £327.4m) and made a pre-tax profit of £21.1m (2020: £25.8m).

The results include £3.9m from groundworks specialist Dam Structures, acquired at the end of February for £27m.

The initial outbreak of Covid-19 did cause a hiatus in operations in the first quarter, hence the fall in profit, but all Severfield factories and sites in the UK and Europe have been fully operational since June 2020.

As of 1st June 2021 the UK and Europe order book stood at £301m at (up from £287m since 1st November 2020), including £18m for Dam Structures.

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Chief executive Alan Dunsmore said: “The group's strategy to build a balanced business, with geographic, sector and client diversity, has facilitated not only revenue growth of around 30% over the last three years but has also provided us with resilience during the pandemic. Our strong balance sheet and ability to generate cash has enabled us to continue to invest in our operations and in strategic acquisitions, such as Dam Structures. We have an established platform for further operational and strategic progress in the year ahead and with the current order book levels and pipeline activity, have the capacity to deliver enhanced shareholder returns in the future.”

He said: “Our balanced order book contains a healthy mix of projects across a diverse range of sectors including industrial and distribution, stadia and leisure, nuclear, transport infrastructure and commercial offices. Significant awards include several large distribution facilities in the UK, reflecting a sector which continues to remain buoyant, the Co-op Live Arena in Manchester, new nuclear orders secured by Harry Peers, and mid-sized office developments, both in London and outside, including one in Glasgow. We have also secured several HS2 bridge packages, following the HS2 notice to proceed issued by the UK government in April. Largely unhindered by Brexit, our European business has also secured several smaller orders, along with proving its continued benefit to our UK operations when tendering for and executing projects in Europe. In terms of geographical spread, of the order book of £301m, 84% represents projects in the UK, with the remaining 16% representing projects for delivery in Europe and the Republic of Ireland.”

Joining the Severfield board as of today as a non-executive director is Rosie Toogood, chief executive of Legal & General's modular homes manufacturing business. She was previously with Rolls-Royce for 25 years.

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