Record order book for structural steel group
Thirsk-based structural steel group, Severfield, says it is coping well with inflationary pressures, with good earnings visibility through 2023 as it issues its results for the year ended 26 March 2022.
The business recorded an 11% revenue rise, up to £403.6m (2021: £363.3m) and pre-tax profits of £21m (2021: £21.1m).
And it points to a record UK and Europe order book of £486m as of 1 June 2022 (1 November 2021: £393m), which includes new industrial and distribution, film studio, commercial office and bridge orders as well as the new stadium for Everton FC.
Alan Dunsmore, chief executive officer, said the company had managed a resilient and strong performance despite ongoing market challenges.
He added: “The Group’s growth strategy is delivering a record order book with a broad diversity of sectors, geographies and clients, providing us with good earnings visibility through 2023 and beyond.
“Although inflation and supply chain pressures remain, we are managing these well and the earnings visibility gives us confidence in maintaining our positive performance expectations for 2023.”
Severfield adds that its India order book of £158m at 1 June 2022 (1 November 2021: £140m), reflects a strong underlying demand for structural steel in India.
During the year, the business continued to work on several large distribution facilities in the UK – its first HS2 bridge package, Water Orton Viaducts in the Midlands, and a large industrial facility in the Republic of Ireland.
Other significant revenue contributing projects have included the Google Headquarters at King’s Cross, the Co-op Live Arena in Manchester and Sky Studios in Elstree, together with some mid-sized office developments, both in London and the UK regions.
Severfield says it has also successfully completed a new £50m revolving credit facility, which matures in December 2026.