Severfield is in a good position for challenging times ahead

The Thirsk-based group said it has a strong balance sheet and cash position, sufficient committed funding in place until 2023 and a cash generative business model.

Chief executive Alan Dunsmore said: “Some projects have gone ahead, but some clients are pausing to see how the landscape unfolds.

“It’s a confidence thing. We are clearly in a recession and there are sectors where decisions are being delayed. The most obvious is commercial offices. Hopefully as the virus abates we will see confidence return.”

Severfield beat its profit target for the year to March 31 as it took on over 100 projects across the UK, Ireland and the Continent. The firm reported a 16 per cent rise in underlying pre-tax profit to £29m, ahead of its profit target of £26m.

Severfield, which worked on the new stadium for Tottenham Hotspur FC and the retractable roof for Wimbledon No.1 Court, said revenues rose 19 per cent to £327m.

Despite its factories remaining operational and all of its UK and European construction sites being open, Severfield has deferred dividend payment decisions until there is greater visibility.

Mr Dunsmore said: “Despite the ongoing uncertainty of Covid-19, we remain well placed to win work in the diverse range of market sectors and geographies in which we operate.

“This allows us to target a good pipeline of opportunities and provides us with the extra resilience and ability to increase our market share. With our teams on site and operational, we are in a good position to service our clients and manage the potentially challenging market ahead.”