Severfield H1 profit up 17% despite revenue fall

Severfield, the Thirsk, North Yorkshire-based steel group, said its revenue fell 8% to £215.3 million in the six months to September 23 but underlying profit before tax rose 17% to £14.2 million.

Interim dividend increased by 8% to 1.4p per share.

Severfield reported a “high-quality, diversified” UK and Europe order book of £482 million at November 1, 2023, that includes new industrial, commercial office, data centre, transport and nuclear orders.

The firm’s India order book was £165 million at November 1.

Severfield CEO Alan Dunsmore said: “In the period we have delivered further profit growth, successfully integrated Voortman, our latest acquisition, reported strong cash generation and have continued to strengthen our balance sheet.

“We have secured a significant amount of high-quality new work, across a variety of sectors, in the UK, EU and India.

“Although the wider market backdrop continues to be challenging, given our successful track record, diversified activities, the strength of our order books and the favourable longer-term outlook, we have increased the interim dividend by 8 per cent and continue to expect to deliver further progress across the group.”