Severfield on track for strategic doubling of profits

Revenues and profits have increased at structural steelwork contractor Severfield as it continues to work on some of the UK’s most prestigious projects including a retractable roof for Wimbledon No.1 Court, a new football stadium in North London and the 22 Bishopsgate skyscraper in the City of London.

Severfield said it was now on track to deliver its strategic goal of doubling pre-tax profits to £26.4M by 2020.

Reported revenue for the six months to 30 September 2017 increased by 16% to £137.1M, up from £118.2M in the same period in 2016.

Profit before tax also increased from £7.4M to £11.5M, an increase of 55%.

The increases in revenue reflects an increase in order flow and production activity during the period, together with an increase in steel prices.

Severfield has also announced a restructuring of its business to supply smaller contractors with steel products.

The decision to target smaller project work will see Sevefield reorganise its two Yorkshire factories to set up a dedicated one-stop-shop for fabricators at its Sherburn plant, near Scarborough.

Fabrication work at Sherburn for mainly warehouses and low rise structures will be consolidated into the main Dalton facility.

Acting chief executive for Severfield Alan Dunsmore, said that the new business venture, Severfield Products and Processing, allowed the group to make better use of its operational footprint in Yorkshire and address smaller scale projects, a segment of the market which historically it has tended to ignore.

“We believe that this proposed reorganisation will enhance our position as the UK’s most efficient structural steel fabricator, continuing to provide our clients with a high-quality product and service in the most cost-effective manner.