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Severfield boss celebrates strong operational result

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Structural steel giant, Severfield, has released an upbeat financial statement and healthy order book following a mixed trading period.  

Severfield CEO, Alan Dunsmore. Credit: Severfield.

Revenue for the year ended 30 March 2024 was £463.5 million, down 6 per cent from £491.8 million in the previous financial period, generating a pre-tax profit of £23 million (2023: £27.1 million), down 15 per cent.    

The business said despite strong operational delivery in the year, the result reflected the “impact of softer market conditions” in the current trading period. 

Conversely, Severfield added as part of its market outlook that conditions had been showing signs of improvement across its UK and European territories, reaffirming the group’s medium-term strategic growth plans.  

The business delivered an operating profit this year of £26.4 million, down 12 per cent from £30.2 million in the prior financial year, and an operating margin of 5.7 per cent (2023: 6.1 per cent).     

Severfield also declared year-end net debt of £9.4 million compared to net funds totalling £2.7 million in 2023, which is due, in part, to a Voortman Steel Construction acquisition loan of £15.2 million. 

At 1 June, Severfield reported a UK and Europe order book value of £478 million, with a higher proportion of those being European orders, down from £482 million in November last year. 

The group’s total dividend increased by 9 per cent to 3.7p per share (2023: 3.4p per share), with a proposed final dividend of 2.3p per share (2023: 2.1p per share), representing 10 consecutive years of progressive dividends for Severfield. 

The result follows a £10 million share buyback programme launched by the group in April this year. 

Severfield CEO, Alan Dunsmore, said: “We are delighted to be reporting another strong performance by the group, with our profits ahead of expectations.  

“This is the result of an excellent operational performance and the success of our strategy to diversify the sectors and geographies we serve.  

“This has enabled us to deliver enhanced returns for shareholders through our recent share buyback scheme, building on our 10 consecutive years of progressive dividends. 

“Looking ahead, we have strong order books in the UK, Europe and India which are providing us with good earnings visibility through 2025 and beyond.  

“With market conditions showing signs of improvement and with our businesses well-placed in markets that are expected to benefit from positive long term growth trends, which are unlikely to be impacted by the result of the upcoming UK general election, we are confident in the outlook for the business.” 

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