Severfield revenue up 19% to £327m, but divi deferred

Thirsk, North Yorkshire-based steel group Severfield said on June 17 its revenue rose 19% to £327.4 million and underlying profit before tax increased 16% to £28.6 million in the year to March 31, 2020. 

The firm said dividend payment decisions have been deferred until greater visibility is available over the impact of COVID-19 on its business.

Severfield said its UK and Europe order book at June 1 stood at £271 million — down from £323 million on November 1 — of which £243 million is for delivery over the next 12 months.

Significant orders include the new stadium works at Fulham FC, the redevelopment of Lord’s Cricket Ground and the remaining works for the Google Headquarters at King’s Cross, London.

Severfield CEO Alan Dunsmore said: “The strong set of results that we are reporting today reflects the further operational and strategic progress that we have made in 2020.

“Our balance sheet and cash position remain strong, we have continued to drive our ‘Smarter, Safer, more Sustainable’ initiatives with an increased focus on manufacturing efficiency, and we have entered new UK markets through the acquisition of Harry Peers. 

“Despite the ongoing uncertainty of COVID-19, we remain well placed to win work in the diverse range of market sectors and geographies in which we operate.

“This allows us to target a good pipeline of opportunities and provides us with the extra resilience and ability to increase our market share.

“With our teams on site and operational, we are in a good position to service our clients and manage the potentially challenging market ahead.”