Revenues and profits up at listed steel group
Revenues at Thirsk-based structural steel group Severfield are up 19% to £327.4m (2019: £274.9m) in the company’s results for the year ended 31 March 2020.
It has also reported pre-tax profits of £25.8m (2019: £24.7m), and good cash generation resulting in year-end net funds of £16.4m (2019: £25.1m).
Underlying pre-tax profits are up 16% to £28.6m (2019: £24.7m), ahead of the company’s strategic 2020 profit target of £26m.
Severfield says that over the same period it carried out over 100 projects in the UK, Ireland and continental Europe in sectors including industrial and distribution, data centres, commercial offices (both in London and the UK regions) and transport infrastructure.
As previously reported it acquired Bolton steel firm Harry Peers, for a net initial cash consideration of £18.9m, and contingent consideration of up to £7m payable in the 2021 financial year.
Severfield’s UK and Europe order book was worth £271m at 1 June 2020 (1 November 2019: £323m), including £17m for Harry Peers.
Noting the likely impact of the COVID-19 outbreak, the firm’s report adds: “To date we have coped well with the challenges presented by COVID-19.
“The Group’s factories are operational and, after some temporary interruptions, all of our construction sites in the UK and Europe remain open.
“Strict precautions are in place for both the factories and the sites including enhanced levels of cleaning, additional hygiene facilities and social distancing.
“At this early point in our financial year it is impossible to predict the full extent of the financial impact of COVID-19 on the 2021 outturn.
“Despite this, we have a strong balance sheet and are confident we have sufficient cash and committed funding in place during this unprecedented period of uncertainty.”
Alan Dunsmore, chief executive officer, said: “The strong set of results that we are reporting today reflects the further operational and strategic progress that we have made in 2020.
“Our balance sheet and cash position remain strong, we have continued to drive our ‘Smarter, Safer, more Sustainable’ initiatives with an increased focus on manufacturing efficiency, and we have entered new UK markets through the acquisition of Harry Peers.
“Despite the ongoing uncertainty of COVID-19, we remain well placed to win work in the diverse range of market sectors and geographies in which we operate.
“This allows us to target a good pipeline of opportunities and provides us with the extra resilience and ability to increase our market share.
“With our teams on site and operational, we are in a good position to service our clients and manage the potentially challenging market ahead.”
