Steelwork contractor says bottom line up nearly one third
Turnover at the steelwork firm helping build Everton鈥檚 new stadium, new studios for broadcaster Sky in Hertfordshire and new viaducts for HS2 in the West Midlands topped 拢200m in the first six months of the year.
Severfield said revenue was up 20% to 拢235m in the half year to 24 September after a record-breaking 12 months last year where income topped 拢400m for the first time.
The country鈥檚 biggest steelwork contractor said pre-tax profit was up 29% to 拢10.2m which it said 鈥渉ighlights our ability to offset ongoing inflationary cost increases through a combination of operating efficiencies, higher selling prices and contractual protection as steel remains largely a pass-through cost for the group鈥�.
It said its income during the period included around 拢23m of steel price increases and it said rising steel prices, 鈥渟upply constraints on certain materials and increased energy and labour costs have continued to drive upward pressure on total build costs鈥� in the first half which it added would continue for the remainder of its financial year.
It said its order book at 1 November stood at 拢464m, down from the 拢486m at the beginning of June, with 拢367m planned over the next 12 months.
The firm, whose ongoing projects include work on Lendlease鈥檚 new Google headquarters building at King鈥檚 Cross as well as Bam鈥檚 Co-op Live Arena in Manchester and Multiplex鈥檚 Argyle Street office scheme in Glasgow, said net debt at half year was 拢15.8m, down from the 拢18.4m it posted at the end of its last financial year.
The firm鈥檚 joint venture in India, JSSL, which has been up and running since 2008, posted an after tax profit with Severfield鈥檚 share of the figure standing doubling to 拢600,000. Revenue at the business was up 70% to 拢70m.
Analysts are expecting full-year revenue of around 拢490m with pre-tax profit to be just over 拢31m.
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