Resilient performance at steel business amidst tough market environment

Thirsk-based structural steel group, Severfield, has reported positive first half results despite difficult market conditions.

Issuing its results for the six-month period ended 23 September 2023, the group has recorded revenues of £215.3m (H1 2023: £234.9m) and an underlying pre-tax profit rise of 17% to £14.2m (H1 2023: £12.1m).

Alan Dunsmore, chief executive officer, said: “In the period we have delivered further profit growth, successfully integrated Voortman, our latest acquisition, reported strong cash generation and have continued to strengthen our balance sheet.

“We have secured a significant amount of high-quality new work, across a variety of sectors, in the UK, EU and India.

“Although the wider market backdrop continues to be challenging, given our successful track record, diversified activities, the strength of our order books and the favourable longer-term outlook, we have increased the interim dividend by 8% and continue to expect to deliver further progress across the group.”

Severfield notes its UK and Europe order book was worth £482m as of 1 November 2023 (1 September 2023: £479m) and includes new industrial, commercial office, data centre, transport and nuclear orders.

And its India order book was worth £165m as of 1 November 2023 (1 September 2023: £170m).

The group explains the challenging market environment means it has experienced some delays in the conversion of its existing pipeline of opportunities, as clients wait for economic stability, along with some lower tendering activity and competitive pricing, particularly in the distribution sector.