Structural steel group Severfield achieves record revenue over last financial year

In the year ended March 25 2023, Severfield increased its revenue by 22 per cent to £491.8m and its underlying profit before tax rose by 20 per cent to £32.5m.

Alan Dunsmore, the chief executive, said: “2023 was a very successful year for the group. We reported record revenue, delivered underlying profits ahead of expectations and secured a significant value of new, high-quality work across all our geographies.

"This demonstrates the success of our strategy to diversify the sectors and geographies we serve, reflects the high-quality of our operations and is testament to the talent and commitment of our people.

"We were also pleased to complete the acquisition of Voortman, which brings in new clients, sectors and opportunities, enhancing our position as one of Europe’s strongest structural steel groups, and positioning us for further growth in the region.

“Whilst there are signs of inflation easing, we remain mindful of the macro-economic backdrop. However, given the group’s performance to date and the strength of our orders books, we are confident of delivering

further progress and a result for 2024 which is in line with our expectations.”

In India, Severfield said it was well-positioned to take advantage of “significant post-pandemic growth opportunities”. Severfield described the outlook for the Indian economy as very encouraging at a time when there was strong underlying demand for structural steel.

In April 2023, after the year-end, Severfield completed the acquisition of Voortman Steel Construction Holding, a steel construction group based in the Netherlands, for a net consideration of €24m.

In a statement, Severfield said: “This provides us with a manufacturing base in Europe to complement our existing European business and will help accelerate our European growth strategy.”

The statement added: ”In addition to VSCH’s core steel fabrication markets in the Netherlands, we are seeing opportunities for growth through its access to the high growth Dutch electricity distribution sector and capabilities in design and build (turnkey) solutions for simpler structures, a business which is currently in its infancy, serving

SMEs (small and medium-sized enterprises) and smaller projects.

It continued: "The acquisition also provides us with growth opportunities through access to new European clients, particularly in the industrial, commercial and residential sectors, a platform to broaden our service offering and an ability to grow in different sectors and geographies, enhancing our position as one of Europe’s strongest structural steel services groups.”