Severfield steels itself to build on strong foundations

STEEL group Severfield is upbeat about the months ahead after putting down strong foundations in the first half of the financial year.

The North Yorkshire group, which recently rebranded dropping the Rowen name, saw its underlying pre-tax profits grow from £1.4m to £3m in the six months to September 30, although last year it also had additional restructuring costs which hampered its bottom line.

 

The group operates in the UK as well as in India through a joint venture, JSW Severfield Structures, and despite a marked fall in revenue – down nearly £20m to £97.4m – there are solid reasons for optimism.

Ian Lawson, Severfield’s chief executive, said: “The first half of the year has seen further good progress across the whole group. Stability within our UK operations has supported continued margin improvement in line with expectations and sustained production levels have underpinned much improved performance in India.

“The combination of a strong first half cash performance and the successful refinancing provides further balance sheet strength and a solid foundation for the group as it continues to improve its profitability and develop its wider strategy.”

 

It continues to work on high-profile projects, including the expansion of the Etihad Stadium for Manchester City and further manufacturing plants for Jaguar Land Rover.

 

During the period it also won new contracts including London commercial office developments at Principal Place and Angel Court, and the Ordsall Chord link bridge project between Manchester Victoria and Piccadilly stations.

Mr Lawson added: “Overall, the group’s strengthening operations and performance continues to leave it well placed to benefit from an improving market in the UK and we are encouraged by the improvement in our order intake, reflecting the higher levels of market activity.

“Accordingly, the group remains on course to deliver earnings for the full year in line with the board’s expectations.”