Steel group reaps rewards of diversification amidst difficult environment

Structural steel group, Severfield, has posted a revenue rise of 20% to £234.9m (H1 2022: £195.9m) – reflecting increased activity and steel prices – in its results for the six-month period ended 24 September 2022.

The Thirsk-based business has also recorded an underlying pre-tax profit rise of 17% to £12.1m (H1 2022: £10.3m), and a UK and Europe order book worth £464m as of 1 November 2022 (1 June 2022: £486m).

Alan Dunsmore, chief executive officer, said: “The Group has delivered a strong performance in the first six months of the year against a difficult macroeconomic backdrop. Our high quality order book reflects our significant market sector, geographical and client diversification and provides us with good earnings visibility.

“Our new simplified divisional structure in the UK and Europe, with our three divisions: Commercial and Industrial, Nuclear and Infrastructure, and Products and Processing, continues the evolution of our strategy and builds on the momentum generated from the operational improvement initiatives that have been put in place over the last eight years.

“The resilient order book, combined with our strong balance sheet and simplified divisional structure, gives us confidence in the future performance of the business and so we are maintaining our expectations for FY23.”

The business says inflationary pressures remain “a challenge” but continue to be well-managed, and notes there is strong and growing demand for steel in its India operation.

For UK and Europe, Severfield says tendering and pipeline activity remain at consistently high levels – including opportunities in the industrial and distribution, transport infrastructure, nuclear, data centre and commercial office sectors.