20th Jun 2018 08:22
LONDON (Alliance News) - Steelmaker Severfield PLC said Wednesday its annual results showed "another year of improved performance" as it posted increased revenue and profit.
For the financial year ended March, the company, whose steel was used in The Shard skyscraper in London, posted pretax profit up 23% to GBP22.2 million from GBP18.0 million in the comparative period a year ago.
Revenue rose 4.6% to GBP274.2 million from GBP262.2 million year-on-year, mainly due to an increase in order flow and production activity and higher steel prices, the company said.
Severfield lifted its total dividend to 2.6 pence per share from 2.3p last year, as it declared a final dividend of 1.7p.
An additional special dividend of 1.7p was proposed, to deliver shareholders a total annual payout of 4.3p per share.
The company's UK order book at June 1 was GBP237 million compared to GBP229 million for the prior year.
"The order book, of which GBP200 million is for delivery over the next 12 months, remains in line with our 'normal' order book levels," Severfield said.
The company said its Indian joint venture, JSSL, generated a "record" order book of GBP106 million.
"The market for structural steel in India has improved significantly over recent months and we are now seeing clear signs of the conversion from concrete to steel which is vital to the long-term growth and value of JSSL," Severfield added.
Chief Executive Officer Alan Dunsmore said the company was confident that financial 2018 will be "another year of progress" for Severfield.
Severfield shares were trading up 3.4% on Wednesday early morning at 84.60p.
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