Severfield reports ‘solid’ UK order book

The Thirsk-based company said the year had seen stabilisation and recovery in the UK business, but disappointment in India.

The company said today; “Underlying profit before tax of £4m represented a significant turnaround from the underlying loss of £21.5m in the 15 months to March 31 2013. This reflected both a good recovery in UK operating margins but also a share of losses from our Indian joint venture of £3m.”

Ian Lawson, the company’s chief executive, said: “During the financial year Severfield has achieved substantial operational improvements across the group and delivered a significant turnaround in underlying profit before tax.

“Pleasingly, the group’s ongoing stabilisation and recovery generated increasing UK operating margins supported by a strong balance sheet and solid order book. While our Indian joint venture performed below expectations, actions are being taken to put the business in a sustainable position and we believe the market in India continues to present significant future growth opportunities.

“The development of a clear group strategy in addition to the anticipated recovery in the core UK market means Severfield is well placed for future growth.”

In a statement, the company said UK turnover of £231.3m compared with £318.3m in the prior 15 month period, reflecting a modest reduction in capacity at its largest business.