Severfield reports strong order book as pre-tax profits double for year

Severfield’s UK order book at 1 June 2015 strengthened to £194M providing the company with a platform to return to growth in 2015/16.

In its annual results for the year ending 31 March 2015, the company also reported underlying pre-tax profits doubling to £8.3M while operating margins stood at 4.5% up from 3.3% for the previous year.

Severfield’s current order book contains over 70 live contracts which are particularly focussed in the company’s key market sectors of commercial offices, retail, stadia and leisure, industrial and distribution, and transport.

New contracts won during the year include London commercial office developments at Principal Place and Angel Court, the Anfield stadium redevelopment for Liverpool Football Club (pictured) and the Ordsall Chord link bridge between Manchester’s Victoria and Piccadilly stations.

Chief Executive Officer Ian Lawson said: “We are very pleased with the continued good progress made across the business, both in the UK and India, operationally and financially.

“Our cash flows and balance sheet remain strong. Furthermore, our continued investment in our equipment brand, market position and our people means that we have the skills to sustain momentum.”

Lawson added that the recruitment of significant numbers of staff from Mabey Bridge, following the announcement of its closure, would support stronger growth in bridge building and infrastructure projects in the coming years.

The company warned that the defective bolt replacement programme on the Cheesegrater tower in London could cost £6M.

A programme of remedial works involving the replacement of all bolts at risk of failure will continue to the end of this year. Discussions with the building’s project team had still failed to resolve where the liability for the costs of the programme should rest.