Steelwork contractor to hand back 拢10m to shareholders
The country鈥檚 biggest steelwork contractor has said its next set of annual results will be better than expected when they are published this summer.
Severfield said its numbers for the year to March 2024 will be 鈥渟lightly above our previous expectations鈥�.
It said year-end net debt would be better than predicted at around 拢10m, down from 拢18.4m last time, while the firm plans to hand back 拢10m to shareholders through a share buyback initiative.
In a brokers note, Liberum said it had raised its earnings per share forecast by 8% this year and by 5% in 2025.
Liberum said it expects underlying pre-tax profit to be 拢35.8m, a rise of 10% on last time, while revenue will be around 拢480m, a fall of 2% on 2022鈥檚 turnover. It will release its annual results on 19 June.
The firm, which has been carrying out the steelwork on Everton鈥檚 new stadium, said its order book in the UK and Europe at the start of the month was a record 拢511m, up from 拢482m at the start of November last year.
It added that its joint venture business in India was 鈥渨ell positioned to take advantage of a very encouraging outlook for the Indian economy and a strong underlying demand for structural steel in construction鈥�.
The firm also said former Manchester Airports Group chief executive Charlie Cornish would take up the chairman鈥檚 role at the beginning of next month.
Cornish, who remains as chairman of MAG, replaces Kevin Whiteman who steps down having completed his nine year tenure.
Meanwhile, AIM-listed steelwork contractor Billington yesterday reported that revenue was up 53% to 拢132.5m last year with pre-tax profit more than doubling from 拢5.8m to 拢13.4m.
Chief executive Mark Smith said: 鈥淚 believe Billington is increasingly being seen as the steel work contractor of choice and the growth in Billington鈥檚 market share in 2023 is particularly noteworthy.鈥�
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