Severfield shares up 11% as H1 revenue hits £137m

Shares of Thirsk, North Yorkshire-based steel group Severfield rose 11% after it said its revenue rose 16% to £137.1 million and underlying profit before tax soared 59% to £12.9 million in the six months to September 30.

Severfield said it expects full year results to be comfortably ahead of previous expectations.

Interim dividend increased by 29% to 0.9p per share.

More than 80 projects were undertaken by the steel firm during the period including the new stadium for Tottenham Hotspur F.C., the retractable roof for Wimbledon No. 1 Court and a new commercial tower in London at 22 Bishopsgate.

At November 1, Severfield’s UK order book stood at £245 million and its India order book was £79 million.

Severfield’s acting CEO Alan Dunsmore said: “I am delighted to be reporting a strong set of results for the half year, which reflects the group’s continued delivery against our strategic targets, improved margins and strong cash generation.

“Building on this performance, we now expect that our full year results will be comfortably ahead of our previous expectations.

“Severfield, with its market-leading position, strong order book and pipeline, is well placed to continue to deliver enhanced value for shareholders.”