Thisk-based Severfield see £30m decrease in revenue

North Yorkshire’s Severfield plc, the largest structural steel specialist in the UK, has reported a significant drop in revenue while releasing its financial results for the year ending 31 March 2015.

Severfield, based in Thirsk, reported an overall revenue of £201.5m for the last financial year, which is notably lower compared to £231.1m in 2014.

The reduction in revenue is a reflection of the company’s focus for the year being on operating margin recovery rather than revenue growth.

The benefits of this strategy wasseen in Severfield’s underlying operating profit of £9.0m, which is an increase of £1.4m from 2014’s £7.6m.

Furthermore, underlying profit before tax, which is management’s primary measure of group profit, doubled to £8.3m compared to last year’s £4m. The profit after tax, reflecting both underlying and non-underlying items was £0.1m (2014: £2.6m loss).

Severfield aim to achieve revenue growth in 2015/16 through its strong order book of £194m. The current order book contains over 70 live contracts, which are involved with the company’s key market sectors of commercial offices, retail, stadia and leisure, industrial and distribution and transport.

Throughout the last financial year, Severfield worked on over 110 projects, some of which included:

• Westfield Shopping Centre, Bradford
• Nova, Victoria, London
• Carrington Power Station
• Manchester City Football Club (the expansion of the Etihad Stadium)
• London Bridge Station Canopies
• New London Embassy
• Telehouse Data Centre, London
• Manchester Victoria Station
• South Bank Tower, London
• Fetter Lane, London
• Sports Direct, Derbyshire
• Microsoft, Amsterdam
• Western Approach Viaduct (WAV Bridge), London

Ian Lawson, chief executive officer, said: “We are very pleased with the continued good progress made across the business, both in the UK and India, operationally and financially. Margin improvement is being sustained, we have a very solid order book and pipeline and we are particularly pleased that we have recommended the reintroduction of a final dividend.

“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 and capacity to sustain momentum and fulfil demand, securing key projects in growth sectors as the UK, and Indian, infrastructure markets continue to develop.

“The Group is well placed for the future and the board is confident that we will be able to maintain improved shareholder returns.”

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