Steel specialist Severfield sees India improvement

Construction of the Leadenhall Building (centre) with the Shard Building (left) 20 Fenchurch Street, or the 'Walkie-Talkie' building (second left) and Tower 42 (right), central London. Anthony Devlin/PA Wire
Construction of the Leadenhall Building (centre) with the Shard Building (left) 20 Fenchurch Street, or the 'Walkie-Talkie' building (second left) and Tower 42 (right), central London. Anthony Devlin/PA Wire
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Underlying profit before tax at, structural steel specialist, Severfield more than doubled on the previous year.

Profit before tax rose to £8.3m from £4m in the previous year. The North Yorkshire-based firm also said that its strong order book positioned it well for growth.

Severfield, who had a hand in the Olympic Stadium and The Shard, said that its Indian joint venture had also delivered improved performance, with share losses of £0.2m, which in 2014 stood at £3m. Reflecting higher production levels and operational improvements.

Ian Lawson, chief executive officer at Severfield, said: “We are very pleased with the continued good progress made across the business, both in the UK and India, operationally and financially.”

The firm said its UK order book stood at £194m at 1 June 2015 up from £185m on 1 November 2014, reflecting an improving market position.

It reported a non-underlying charge of £6m for cost of the Leadenhall remedial works programme.

Mr Lawson said: “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.”

Severfield said over 110 projects were undertaken during the year in key market sectors of core construction; office developments, stadia, warehouses and distribution centres; and transport.