Resilient results for listed steel business despite pandemic’s impact

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Thirsk-based structural steel group, Severfield, reports its revenues have risen 11% to £363.3m (2020: £327.4m) in its results for the year ended 31 March 2021.

Pre-tax profits were £21.1m (2020: £25.8m), with underlying pre-tax profits of £24.3m (2020: £28.6m).

Good cash generation resulted in year-end cash balances of £25m. Net funds (pre-IFRS 16 basis) were £4.4m (2020: £16.4m), including acquisition loans of £20.7m (2020: £13.1m).

No claims were made under COVID-related Government schemes and all tax deferrals for the company are now fully up to date.

Severfield says its UK and Europe order book was worth £301m at 1 June 2021 (1 November 2020: £287m), including £18m for DAM Structures – a company acquired by Severfield in February of this year – of which £241m is for delivery over the next 12 months.

Severfield says the high quality UK and Europe order book supports its continued growth throughout the 2022 financial year and beyond.

It notes its activities in India are being disrupted by the ongoing second wave of COVID-19.

But the business says a step up in order book, strong pipeline and existing client relationships leave its Indian joint venture (JSSL) very well positioned once current COVID-19 issues subside.

Alan Dunsmore, Severfield chief executive officer, said: “The Group’s strategy to build a balanced business, with geographic, sector and client diversity, has facilitated not only revenue growth of around 30% over the last three years but has also provided us with resilience during the pandemic.

“Our strong balance sheet and ability to generate cash has enabled us to continue to invest in our operations and in strategic acquisitions, such as DAM Structures.

“We have an established platform for further operational and strategic progress in the year ahead and with the current order book levels and pipeline activity, have the capacity to deliver enhanced shareholder returns in the future.”