Yorkshire steel firm supplying new Everton stadium is in a good financial position

Structural steel firm Severfield said that trading in the first five months of the 2022 financial year continued to be positive and is in line with management's expectations.

The growth in the order book has been driven by several significant project wins including the new stadium for Everton Football Club.

The Thirsk-based firm said its financial position remains good despite recent steel and other input price rises impacting working capital in the short term. The outlook for the year ending March 31, 2022 is unchanged, Severfield said.

Profits for the financial year are likely to have a second half bias, as expected, with several ongoing contracts expected to deliver higher profits in the second half of the year.

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The UK and Europe order book at September 1 includes a significant amount of new work which the business has secured over recent months and now stands at a new record level of £376m, up from £301m in June 1, 2021, of which £291m is for delivery over the next 12 months.

Severfield said this leaves the business very well-positioned with a strong future workload for the remainder of the 2022 financial year and beyond.

The growth in the order book has been driven by several significant project wins including the new stadium for Everton Football Club, two large and various smaller distribution facilities in the UK, reflecting a sector which continues to remain buoyant, new HS2 bridge packages and other bridge awards reflecting investment in infrastructure by Highways England and Network Rail.

The Thirsk-based firm says its order book remains well-balanced, showcasing the benefits of its strategic diversification over recent years, and contains a healthy mix of projects across the group's key market sectors.

In terms of geographical spread, of the order book of £376m, 90 per cent represents projects in the UK, with the remaining 10 per cent representing projects for delivery in Europe and the Republic of Ireland.

The firm added: "We continue to be very encouraged by the current level of tendering and pipeline activity across the group.

"We remain well-positioned to take advantage of further significant opportunities, including in the industrial and distribution, transport infrastructure, commercial office (including in London), nuclear and data centre sectors, providing us with extra resilience and the ability to drive future profitable growth."

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