Severfield returns to profit

​​Steel group Severfield has returned to the black and said it is well placed to benefit from an improving market in the UK.

​The Thirsk-based group​, which has worked on Arsenal’s Emirates Stadium, the Shard skyscraper and the London 2012 Olympic stadium, announced pre-tax profits of £1.4m in the six months to September 30, up from a loss of £2.5m last year.

Underlying pre-tax profits, stripping out restructuring and redundancy costs and other charges, rose from £1.4m to £3m

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The group’s UK order book stood at £185m on November 1, up from £168m at the beginning of May, reflecting strong order intake and an increase in general market activity.

Severfield took on over 70 projects during the half year in key market sectors such as rail, transport, bridges, office developments, stadia, warehouses and distribution centres.

CEO Ian Lawson said: “The first half of the year has seen further good progress across the whole group. Stability within our UK operations has supported continued margin improvement in line with expectations and sustained production levels have underpinned much improved performance in India.

“The group’s strengthening operations and performance continues to leave it well placed to benefit from an improving market in the UK and we are encouraged by the improvement in our order intake, reflecting the higher levels of market activity.

“The group remains on course to deliver earnings for the full year in line with the board’s expectations.”

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