Severfield on track to double pre-tax profits

Engineering and structural steel specialist Severfield, the Thirsk-based company behind The Shard, is on track for major growth plans.

The company, which plans on doubling underlying pre-tax profits by 2020, has seen revenues increase 10% to £262.2m for the year to March 2017.

Underlying pre-tax profits reached £19.8m from £13.2m the year before.

Payment of 2016 and interim 2017 dividends amounted to £5m. The directors are recommending a final dividend of 1.6p per share which will amount to a £4.8m, but this is subject to approval of shareholders at a meeting in September.

Large London projects have helped the cause, including the new roof for Wimbledon No. 1 Court, a major new commercial HQ building in London, the new stadium for Tottenham Hotspur F.C. and a new commercial office tower at 22 Bishopsgate – all of which bring in revenues of more than £20m.

A return to more accustomed profit levels in 2016 was down to a recovery from the Cheesegrater debacle, and the firm is back on track to meet targets.

Alan Dunsmore, acting chief executive officer following the temporary departure of Ian Lawson due to illness, commented: “I am delighted to announce another set of excellent results which keeps us on track towards our target of doubling our 2016 underlying pre-tax profit by 2020.

“Our strategy is well-flagged and it continues to deliver operationally and financially. We have worked on some major projects during the year, especially in London, including Wimbledon No. 1 Court, Tottenham Hotspur and 22 Bishopsgate. Our return on capital employed has risen to 14.6% and cash generation has been excellent.

The current order book and pipeline, coupled with a continued stable market environment, will support further progress in the current financial year towards our 2020 target.”