Severfield profits climb by 29%
The North Yorkshire steelwork contractor completed a bumper year, with annual revenue closing on the £500m mark.
With banner projects including Everton FC’s new Bramley-Moore Dock stadium on its roster – the firm installed the final roof trusses in May – Severfield recorded £491.8m turnover for the year to March 2023, up from £403.6m in 2022.
Profit before tax climbed from £21m to £27.1m, an increase of 29%. Basic earnings per share went up 37%, from 5.1p to 7p.
Since its financial year ended, Severfield has acquired Dutch steel fabrication business Voortman for £20.5m. The firm said that there are significant pipeline opportunities in the UK and Europe, and that it is well positioned for growthj in India.
Chief executive Alan Dunsmore said: “We reported record revenue, delivered underlying profits ahead of expectations and secured a significant value of new, high-quality work across all our geographies.
“This demonstrates the success of our strategy to diversify the sectors and geographies we serve, reflects the high-quality of our operations and is testament to the talent and commitment of our people.
He continued: “We were also pleased to complete the acquisition of Voortman, which brings in new clients, sectors and opportunities, enhancing our position as one of Europe’s strongest structural steel groups, and positioning us for further growth in the region.
“Whilst there are signs of inflation easing, we remain mindful of the macro-economic backdrop. However, given the Group’s performance to date and the strength of our order books, we are confident of delivering further progress and a result for 2024 which is in line with our expectations.”
In addition to Everton – reported as on time and on budget in April – Severfield’s commercial and Industrial division’s work in the year included work on the Co-op Live Arena in Manchester, Pinewood Studios in Shepperton and the Google HQ at King’s Cross, which is now largely complete.
The firm also started work on the Envision battery plant in Sunderland, a major site in driving towards net-zero.
Work recently secured includes Sunset Studios in Hertfordshire, a large data centre in London, two large commercial office developments in London, and various industrial and distribution facilities in the UK.
Severfield also has a nuclear & infrastructure division, which continued work on various HS2 bridge projects and a large package of works for General Electric at the Hinkley Point site.