Everton stadium helps Severfield order book hit £376m

Thirsk, North Yorkshire-based steel group Severfield said on Wednesday its order book at September 1 stood at a new record of £376 million, driven by several significant project wins including a new stadium for Everton F.C.

Ahead its AGM on Wednesday, Severfield announced a trading update for the financial year ending March 31, 2022.

“The UK and Europe order book at 1 September includes a significant amount of new work which we have secured over recent months and now stands at a new record level of £376m (1 June 2021: £301m), of which £291m is for delivery over the next 12 months,” said Severfield.

“This leaves the group very well-positioned with a strong future workload for the remainder of the 2022 financial year and beyond.

The growth in the order book has been driven by several significant project wins including the new stadium for Everton F.C., two large and various smaller distribution facilities in the UK, reflecting a sector which continues to remain buoyant, new HS2 bridge packages and other bridge awards reflecting investment in infrastructure by Highways England and Network Rail.

“The order book remains well-balanced, showcasing the benefits of our strategic diversification over recent years, and contains a healthy mix of projects across the group’s key market sectors.

“In terms of geographical spread, of the order book of £376m, 90 per cent represents projects in the UK, with the remaining 10 per cent representing projects for delivery in Europe and the Republic of Ireland (1 June 2021: 84 per cent in the UK, 16 per cent in Europe and the Republic of Ireland).

We continue to be very encouraged by the current level of tendering and pipeline activity across the group.

“We remain well-positioned to take advantage of further significant opportunities, including in the industrial and distribution, transport infrastructure, commercial office (including in London), nuclear and data centre sectors, providing us with extra resilience and the ability to drive future profitable growth …

“The Indian joint venture (‘JSSL’) has continued its recovery from the effects of the second wave of COVID-19.

“The factory in Bellary and all the business’s construction sites are currently operational.

“After a difficult start to the first half, when output was disrupted, the company is expected to maintain a largely break-even profit position in H1, reflecting an Indian market which is now showing signs of improvement.

“Despite the recent COVID-19 challenges, JSSL’s clients have continued to place orders, resulting in a strong order book of £135m (1 June 2021: £140m).

“In terms of mix, 60 per cent of the order book represents higher margin commercial work, with the remaining 40 per cent representing industrial projects, mainly for JSW (1 June 2021: commercial work of 68 per cent, industrial work of 32 per cent). 

“JSSL’s pipeline of potential orders continues to include several commercial projects for key developers and clients with whom it has established strong relationships, including in the commercial office, data centre and healthcare sectors.

“This, together with JSSL’s healthy order book, reflects a continuing strong underlying demand for structural steel in India, leaving the business very well-positioned as the market continues its recovery from the second wave of COVID-19.”

 

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Mark McSherry
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