Severfield delivers strong revenue growth after securing work at Google HQ and Everton's new stadium

In the six-month period ended September 24 2022, Severfield’s revenue increased by 20 per cent to £234.9m. The group said it had secured high quality order books over the last half year and inflationary pressures were being well-managed.

Alan Dunsmore, the group’s chief executive, told The Yorkshire Post that Severfield had delivered another good set of results, which were supported by a strong order book.

Severfield, which employs around 700 people at its site near Thirsk, also had “first mover advantage” in the Indian market, Mr Dunsmore said, where the economy was growing strongly.

Mr Dunsmore added: “The group has delivered a strong performance in the first six months of the year against a difficult macroeconomic backdrop.

"Our high quality order book reflects our significant market sector, geographical and client diversification and provides us with good earnings visibility.

“Our new simplified divisional structure in the UK and Europe, with our three divisions: commercial and industrial, nuclear and infrastructure, and products and processing, continues the evolution of our strategy

and builds on the momentum generated from the operational improvement initiatives that have been put in place over the last eight years.

“Our Indian business continues to see strong demand for structural steel and we are ramping up the production at our Bellary facility towards its maximum capacity of c.100,000 tonnes while also looking to identify another plot of land to facilitate the future expansion of the business.

“The resilient order book, combined with our strong balance sheet and simplified divisional structure, gives us confidence in the future performance of the business and so we are maintaining our expectations for FY23 (full year 2023).”

During the period, Severfield continued to work on several large distribution facilities in the UK, the Co-op Live Arena in Manchester, the Google headquarters at King’s Cross and a large industrial facility in the Republic of Ireland, which is now complete.

Other significant revenue contributing projects included the new stadium for Everton F.C., Pinewood Studios in Shepperton, the ExCel Arena in London and a number of mid-sized office developments, both in the UK and Republic of Ireland.

Commenting on outlook, Severfield said: “We have increased revenues and profits in the UK and India, our order books are substantial and of high quality, and our balance sheet remains healthy, allowing us to operate effectively and efficiently and to continue making the right long-term decisions for the business.

"The group’s businesses are well-positioned in markets with excellent opportunities, underpinned by our new, simplified divisional structure, providing us with a better platform to fulfil our strategic growth aspirations.”

"We remain mindful of the macro-economic backdrop, including ongoing inflationary pressures. However, given the group’s performance to date and the current visibility of future workload for delivery in the second half of the year, we are confident of delivering further progress and a full year performance which is in line with our previous expectations.”