Severfield first-half revenue up 5% to £196m

Severfield, the Thirsk, North Yorkshire-based steel group, said on Tuesday its first-half revenue rose 5% to £195.9 million and underlying profit before tax was up 23% to £10.3 million in the six months ended September 30, 2021.

Interim dividend increased by 9% to 1.2p per share.

Severfield said the rise in revenue “predominately reflects six months of additional revenue for DAM Structures, which was acquired in February 2021.”

The Thirsk firm reported a record UK and Europe order book of £393 million at November 1, 2021, including new industrial and distribution and bridge orders and the new stadium for Everton F.C.

“During the period, we continued to work on a large industrial facility, which includes a bespoke paint package, in the Republic of Ireland, several large distribution facilities in the UK and our first HS2 bridge package, Water Orton Viaducts in the Midlands,” said Severfield.

“We have also continued our work on the new Google Headquarters at King’s Cross, together with a number of mid-sized office developments, both in London and the UK regions (including Argyle Street in Glasgow, Sky Studios in Elstree, and Sherwood Street and 30 South Colonnade, both in London).”

Severfield’s India order book was steady at £140 million.

We are making strong progress in our Indian business and are well-placed to capitalise on this exciting market opportunity as the economy recovers from the pandemic and construction continues to transition from concrete to steel … 

“While the inflationary outlook and labour market and supply chain pressures present challenges, our strong order book position and operational experience give us confidence for the rest of this year and provide good visibility through FY23.”