27th Nov 2018 09:38
LONDON (Alliance News) - Severfield PLC on Tuesday said its profit increased in the first half of its current financial year helped by higher order intake and rising production volumes.
The structural steel company said pretax profit rose 14% to GBP13.1 million in the six months to the end of September compared to GBP11.5 million reported for the same period a year ago.
Revenue grew by 8.8% to GBP149.1 million from GBP137.1 million, reflecting an increase in order flow and production activity during the period.
During the half-year, Severfield said it undertook over 70 projects in key market sectors including the new stadium for Tottenham Hotspur football club, the retractable roof for Wimbledon No 1 Court, and a new commercial tower in London at 22 Bishopsgate.
Severfield upped its interim payout by 11% to 1.0 pence a share from 0.9p paid the year before.
As at the beginning of November, the company said its UK order book stood at GBP230 million, comprising small, lower-risk projects. As at June 1, the order book had been slightly higher at GBP237 million.
Meanwhile, in India, the company reported an order book of GBP124 million as at November 1, up from GBP106 million seen in June, thanks to the expansion of its Bella facility.
"Our continued operational and strategic progress has resulted in another period of growth for the group," said Chief Executive Alan Dunsmore.
"In addition to a high quality and stable UK order book, we continue to see good progress in India and have established exciting new organic opportunities for growth," added Dunsmore.
Severfield shares were trading 0.1% lower on Tuesday at 67.75p each.
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