Severfield results confirm return to growth

Steelwork contractor Severfield has revealed that it has returned to revenue growth as it published its half-year figures for the period ending 30 September 2015.

Over the period, revenue rose by 20% to £117.1M, while the underlying profit before tax was £4.8M, compared with £3M in the same period last year.

Severfield Chief Executive Officer Ian Lawson (pictured), said: “I am delighted to announce another six months of good progress at Severfield. We have achieved growth in revenue, profits and cash generation, year-on-year margin increases and also remain on track for continuing margin improvement.

“We remain very active in our chosen sub-sectors of focus, specifically construction and infrastructure and our order book remains solid at £185M and the pipeline healthy. The order book comprises a good balance of small and medium-sized projects, and could have been even greater had some of our larger prospects not been subject to material delays in mandates being awarded

“We expect the group’s performance to continue to improve, supporting cash generation, investment, the achievement of our growth expectations and the maintenance of our progressive dividend policy.

Commenting on the recent steel industry job losses Mr Lawson pointed out that the main type of steel used in the construction industry, has not been affected by any of the announcements

“The demand for structural steel is increasing in response to the UK’s growing construction industry. We do not foresee any capacity constraints that could impact on our ability to provide the sector with the on time delivery and service levels, which our reputation is built on.”