27th Nov 2019 11:33
(Alliance News) - Structural steel firm Severfield PLC boosted its interim dividend Tuesday despite profit and revenue falling amid the impact of contract phasing.
For the six months ended September, pretax profit narrowed 37% to GBP8.2 million from GBP13.1 million the year prior. This was after revenue fell 12% to GBP131.7 million from GBP149.1 million the year before.
Performance was impact by contract phasing which will see the second half of the financial year deliver stronger results than the first half. In recent years, the weighting between the first and second halves of the year have been more equally weighted.
"We have made strategic and operational progress in the first half of the year," Chief Executive Officer Alan Dunsmore said. "We were pleased to complete the acquisition of Harry Peers, which brings in new clients, sectors and opportunities as well as continuing organic growth across all our geographies."
In October, Severfield acquired fellow structural steel firm Harry Peers & Co Ltd for up to GBP25 million in cash.
Severfield proposed a 1.1 pence per share interim dividend, up 10% from 1.0p the year prior.
"We are pleased to confirm that full year guidance is in line with expectations and with our strong order book, cash generative business and clear growth plans, we remain confident in our future ability to deliver returns for our shareholders," Dunsmore added.
In the UK & Europe, the order book rose to GBP323 million from GBP295 million three months earlier of which GBP20 million was from its Harry Peers acquisition. The order book in India was firm at GBP134 million over the same period.
Shares in Thirsk-based Severfield were 2.5% lower at 72.34 pence in London on Wednesday.
By Ahren Lester; [email protected]
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