Severfield reports healthy tendering levels

The UK’s largest constructional steelwork contractor Severfield reports a healthy level of tendering in key market sectors in its annual results for the year to 31 March 2020.

Chief Executive Officer Alan Dunsmore (pictured) reported turnover up 19% to £327.4 million (£274.9 million) and underlying pre-tax profits ahead 16% to £28.6 million (£24.7 million), beating the strategic profit target for the year of £26 million.

Highlights of the year included acquisition of nuclear, process industries and power generation structural steelwork specialist Harry Peers, which brought the group into the nuclear market for the first time. Severfield undertook over 100 projects in the UK, Ireland and Europe in sectors including industrial and distribution, data centres, commercial offices and transport infrastructure.

As of 1 June, the order book stood at £271 million. The results include a £2.2 million share of profit from Indian joint venture JSSL, reflecting increased revenue and margin improvement. The India order book at 1 June stood at £110 million.

The company’s factories are operational as are all its UK and European construction sites. Mr Dunsmore said tendering and pipeline activity remain encouraging but some clients were delaying investment decisions: “The strong set of results that we are reporting today reflects the further operational and strategic progress that we have made in 2020. Our balance sheet and cash position remain strong, we have continued to drive our ‘Smarter, Safer, more Sustainable’ initiatives with an increased focus on manufacturing efficiency, and we have entered new UK markets through the acquisition of Harry Peers.

“Despite the ongoing uncertainty of COVID-19, we remain well placed to win work in the diverse range of market sectors and geographies in which we operate. This allows us to target a good pipeline of opportunities and provides us with the extra resilience and ability to increase our market share. With our teams on site and operational, we are in a good position to service our clients and manage the potentially challenging market ahead.”