Record order book and new leadership for Severfield

Significant rates of new work in H2 FY2024 contributed to the structural steel group reporting an order book for the UK and Europe of £511 million, up from £482 million at 1 November 2023, of which £397 million is for delivery over the next 12 months.   

It comes as the group also announced Charlie Cornish has been appointed non-executive chairman and director of Severfield and will succeed Kevin Whiteman on 30 July. 

Severfield said 32 per cent of its current order book represents projects in Europe and Ireland, bolstered by the group’s acquisition of Dutch steel fabricator Voortman Steel Construction in March last year. 

Adding: “The order book remains well diversified and contains a good mix of projects across the group’s key market sectors.”  

This includes large energy and net zero project opportunities in the UK, Europe and Ireland for its Commercial & Industrial division, as well as its Nuclear and Infrastructure businesses.   

Share buyback programme 

Severfield traded well in H2 FY2024 and expects to deliver full-year results “slightly above” previous expectations, ending the period in a strong financial position and with net debt of £10 million. 

It added this was because of improved underlying working capital and an increase in advance payments on projects. 

It also said it expects its Modular Solutions division to deliver a small profit for FY2024, in part due to growth areas like renewable energy and data storage. 

The group will start a £10 million share buyback programme to fund strategic growth opportunities, maintain its balance sheet and operations, and ensure shareholder returns. 

“The purpose of this buyback programme is to return surplus capital to shareholders and reduce the group’s share capital, whilst maintaining the financial flexibility to invest in the ongoing execution of our strategy to deliver sustainable growth and attractive returns,” said Severfield. 

Full financial results are expected to be released on 19 June. 

Positive outlook 

“The group is performing well, the outlook is positive and our businesses are well-positioned in markets with excellent long-term growth opportunities,” said Severfield.  

“Whilst there remains some uncertainty in the wider economy, we are seeing an improvement in market conditions which, together with our high-quality order books, diversified activities and operational delivery capabilities, provides us with confidence for the year ahead.” 

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