19th Jun 2019 09:48
(Alliance News) - Structural steel firm Severfield PLC on Wednesday reported "another" good year, with the order book of future work looking strong.
Severfield, which has worked on projects such as Tottenham Hotspur FC's new stadium and the roof at Wimbledon's Court No.1, reported revenue of GBP274.9 million for the 12 months to March, 0.3% higher on the year before.
Pretax profit was GBP24.7 million, up 11% year-on-year, with underlying pretax profit also at GBP24.7 million but 5.1% higher on the year prior. Severfield is on track to reach an underlying pretax profit of GBP26 million by financial 2020, it added.
Severfield is paying a final dividend of 1.8 pence per share, meaning the year's total is 2.8p, 8% higher than the 2.6p returned the year before.
Severfield's UK & Europe order book as of June 1 was GBP295 million, 28% higher than a year before, while in India the order book is GBP134 million, up 8.9% year-on-year.
Chief Executive Alan Dunsmore said: "We are pleased to have delivered another year of good performance. Our UK & Europe order book of GBP295 million contains a healthy mix of projects across a diverse range of sectors and we have made strategic progress in the UK, Europe. and India.
"There is now considerable positive momentum within the Group which, in combination with our cash generative nature and strong positions in our core markets, provides us with the platform for further operational and strategic progress. We remain on track to deliver on our strategic targets, including the doubling of underlying pretax profit to GBP26 million by 2020 and we look forward to another positive year ahead."
In the UK & Europe, revenue was broadly flat year-on-year mainly due to softness in the UK, and some delays in projects. The underlying operating margin improved to 8.5% from 8.3%.
In India, where Severfield operates in a joint venture called JSSL, performance was "strong", with the structural steel market seeing a step change in the country.
Shares in Severfield were 0.8% higher on Wednesday morning in London at 72.58 pence each.
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